Key Takeaways
BTC might escape above $110K and eye $150K earlier than the tip of the yr. August might spark volatility, however cycle peak indicators instructed the market is much from being overheated.
Bitcoin [BTC] nonetheless has extra gas to run on, and a breakout to a brand new file excessive could possibly be seemingly, in accordance with analyst Willy Woo.
He noted that an more and more favorable liquidity set-up and low macro threat might gas BTC progress, just like the uptrend seen in 2017, 2021, and early 2024.
“It fashions BTC’s liquidity, we’re late cycle. Dips in threat are areas of latest discovered liquidity, typically a prelude to interrupt new highs. It’s dipping proper now!”
Supply: Willy Woo/X
The above indicator tracks macro threat linked to on-chain liquidity. The decrease the readings, the extra seemingly the expansion is, as seen in 2017 and 2021.
Presently, the studying has been elevated whereas BTC has been caught in $100K-$110K vary. However a sustained decline in threat could possibly be constructive for the asset.
BTC is much from topping out
The above bullish outlook was additionally supported by low readings on key cycle prime metrics.
In keeping with a composite tracker of the highest 30 cycle peak alerts, together with Pi Cycle and MVRV Z-Rating, none had been flagged as of this writing.
This meant BTC nonetheless had a agency ‘maintain’ score and no must promote, implying potential future progress.
Supply: CoinGlass
On the demand aspect, long-term holders (LTH, customers who’ve held on to BTC for greater than 155 days) nonetheless had sturdy convictions within the asset.
Between April and July, this investor cohort elevated its BTC holdings by over 1 million BTC. Now they maintain 15.4 million BTC from 14.25 million BTC in April.
In addition to, the 30-day internet LTH holding change has remained constructive regardless of a slight decline. This conviction and accumulation coincided with a 46% restoration for BTC from April lows.
Supply: CryptoQuant
Earlier within the yr, LTH internet change flipped destructive and coincided with the native peak and subsequent 30% pullback from $109K to $75K.
Nevertheless, the present constructive LTH bid instructed a bullish conviction, and constructive for the BTC worth outlook.
Actually, Charles Edwards, founding father of crypto VC Capriole Investments, speculated that BTC might hit $150K by September, citing rising world liquidity.
The same worth goal, however utilizing technical evaluation, was shared by analyst Crypto Jelle.
“Excessive-timeframe bullish pennant breakout. Goal: $150,000. Hold it easy.”
Supply: Crypto Jelle/X
However crypto buying and selling desk QCP Capital cautioned that regardless of the summer time lull, new tariffs and the debt ceiling deadline in August might spark volatility.
“However beware the quiet. Volatility could also be on summer time break, however Q3 and This fall might nonetheless ship fireworks.”
