Cryptanalyst James Check (aka Checkmatey) has predicted that bitcoin could still make more bullish moves. However, he warned of an “escape velocity” that could send the Flagship Cryptocurrency Price Spirals Down.
What escape velocity means and how it affects bitcoin
Simply put, escape velocity is the minimum speed at which a person or object needs to escape the Earth's gravitational pull (i.e., the force that brings one back to Earth). The cryptanalyst James Check referred to this term while observing that bitcoin has likely not yet reached the point of “euphoric escape velocity.”
This suggests that the crypto token has yet to reach a point where its price can be said to be unlikely to fall beyond a critical support level like $70,000. The analyst commented that bitcoin not reaching escape velocity is “a good thing.” He further explained that this indicates that the market is “unlikely to be overstretched, overboughtand oversaturated.”
Check mentioned that a break above $73,000 would become short-term holders (STH) in “sufficient profits”, which generates some resistance to the price of bitcoin. Basically, the analyst suggested that bitcoin reaching that price level could trigger a wave of liquidations by these short-term holders, which could cause the price of bitcoin to falter or even decline.
However, things could also turn out well, as Check added that $73,000 level It could also be where an “escape velocity phase shift” occurs for the price of bitcoin. bitcoin reaching $73,000 is also significant because it is close to its current all-time high (ATH) of $73,750.
While highlighting an inverse head and shoulders pattern that had formed on the bitcoin chart, crypto analyst crypto Jebb bitcoin/bitcoin-100000-head-and-shoulders/” rel=”nofollow noopener” target=”_blank”>mentioned that there is a “high degree of probability” that bitcoin will see a rise to $100,000 if it breaks above $73,800.
Another wave of demand is emerging
James Check noted that the market is seeing the first signs of a bitcoin/bitcoin-troubles-far-from-over/” rel=”nofollow noopener” target=”_blank”>new wave of demand what could I send bitcoin/bitcoin-price-crash-10-69000/” rel=”nofollow noopener” target=”_blank”>bitcoin to a new ATH. He noted that bitcoin Spot ETFs appear to have reversed from a four-week streak of net outflows to net inflows, with these funds recording more than 1.2 billion dollars in net inflows over the past few weeks.
The crypto analyst states that this event “could well be ground zero for that second wave of demand” if the net exit phase ends. Overall, Check sounded optimistic about bitcoin's future trajectory and also noted that the crypto token is coming out of two months of healthy consolidation.
Based on this, he stated that he would not be surprised if bitcoin was about to set a new all-time high. At the time of writing, bitcoin is trading at around $69,400, down in the last 24 hours, according to bitcoin/” rel=”nofollow noopener” target=”_blank”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com