Bitcoin Price Prediction: What’s the Next Target and is a Liquidity Crisis Coming?
The price of Bitcoin (BTC) has reached new all-time highs much faster than analysts had expected. A substantial upswing kicked off a few weeks after the approval of the Bitcoin Spot ETF.
BTC started the week with an intense burst of volatility, as it topped $73K, tumbled to $69K, and then climbed its way back above $70K — all in around four hours. The price is now charting new highs, at the time of this writing.
Bitcoin has surged so rapidly that several market analysts state we are in an “up only” trend, and BTC’s price is poised for further gains.
What’s BTC’s Next Target?
On his X account, renowned crypto analyst Ali shared a post about Bitcoin’s future price trajectory using the Bitcoin MVRV Pricing Bands.
MVRV compares the market value of a cryptocurrency to its realized value, helping assess whether it’s overvalued or undervalued based on past investor prices.
By using this metric, Ali predicts a key price target for BTC at $83,035.
According to the #Bitcoin MVRV Pricing Bands, the next key price target for $BTC is $83.035! pic.twitter.com/Qc8QA62LmZ
— Ali (@ali_charts) March 12, 2024
A Sell-Side Liquidity Crisis
Reaching such levels would mean trouble for Bitcoin shorts, who might struggle to put downward pressure on BTC’s price, according to Ki Young Ju, the founder of CryptoQuant.
Ju’s rationale is that, as long as Bitcoin Spot ETF inflows keep coming, bears would stand no chance against bulls as demand significantly outpaces the available supply — considering that BTC ETFs have accumulated nearly $30 billion.
Ju highlighted the significant impact these institutional vehicles have on Bitcoin’s supply dynamics, as ETFs alone acquired over 30,000 BTC in a single week.
It’s worth noting that BTC’s surge has led to a significant increase in miner revenues, with daily Bitcoin mining rewards hitting a historic high of $78.89 million, surpassing the previous record of $74.4 million set in October 2021.
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