A potential return of Bitcoin (BTC) to $73,000 could signify the beginning of the asset’s acceleration to “escape velocity,” according to a prominent crypto analyst. This term, typically used in astrophysics, refers to the minimum speed needed for an object to break free from the gravitational field of a celestial body without further propulsion. In the context of Bitcoin, it implies a significant upward momentum that could drive BTC to new heights.
Escape Velocity and Bitcoin’s Trajectory
Crypto analyst James Check used the concept of escape velocity in a May 21 market report to describe Bitcoin’s potential movement once it reclaims the $73,000 price level. He referred to the short-term holder (STH) market value to realized value (MVRV) metric, indicating that the market is not yet “overstretched, overbought, and over-saturated.”
“Whilst the transition from enthusiasm to euphoria can happen quickly, it feels like we have not reached the point of euphoric escape velocity…yet,” Check explained. “We are still within a steady, stable, enthusiastic, but importantly NOT euphoric phase of the bull,” he said, forming strong base foundations for a price rally at $73,000.
Short-Term Holder Resistance
However, Check also warned that the $73,000 price point could meet resistance from short-term holders (STH), which are wallets that have held Bitcoin for less than 155 days. These holders might find themselves in “sufficient profit” and could potentially sell off, causing some resistance.
Market Sentiment and Analyst Perspectives
Several other crypto analysts agree that market euphoria has not yet materialized.
“Bitcoin is at $70k and there is little excitement and no euphoria, have to like it,” crypto trader Matthew Hyland stated in a May 22 post on X.
#BTC is at $70k and there is little excitement and no euphoria
Have to like it
— Matthew Hyland (@MatthewHyland_) May 22, 2024
Pseudonymous crypto trader Jelle added, “Bitcoin is just a sneeze away from entering price discovery.”
#Bitcoin is just a sneeze away from entering price discovery! 🚀
After breaking the falling wedge, price pushed all the way back to $71,000, where it now consolidates less than 4% away from new all-time highs.
It's time for the next leg higher. pic.twitter.com/ygAv3EKtKS
— Jelle (@CryptoJelleNL) May 21, 2024
Another crypto trader, Yoddha, believes Bitcoin will reach its peak price before March 18, 2025:
“Bitcoin has been consolidating in the current range from the past 84 days, IMO from the current price, BTC will hit the Top within the next 300 days,” they wrote in a May 22 post on X.
#Bitcoin has been consolidating in the current range from the past 84 days
IMO from the current price, BTC will hit the Top within the next 300 days pic.twitter.com/CmZTqWCeOW
— Yoddha (@CryptoYoddha) May 22, 2024
Current Price and Short-Term Outlook
As of now, Bitcoin is trading at around $69,088. A jump to $73,000 would represent a 5.6% increase, according to CoinMarketCap data. While this move could trigger significant momentum, the potential for short-term holder sell-offs suggests that any price surge may face initial hurdles.
The potential return of Bitcoin to $73,000 is being closely watched by analysts and traders alike. While the concept of escape velocity suggests a strong upward momentum, the market’s reaction, particularly from short-term holders, will be critical in determining whether BTC can sustain and build on this potential rally. As always, the crypto market remains unpredictable, with various factors influencing price movements in the short and long term.
