Record-Breaking Bitcoin (BTC) Price Rally Predicted by Bernstein
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Bernstein analysts have recently predicted a potential record-breaking rally for Bitcoin (BTC), arguing that the best days for the digital currency are still ahead.
On Monday, Bitcoin is sitting just above the $48,000 level, showing remarkable stability.
Despite these gains, the current interest in Bitcoin has yet to reach the fervent peaks observed in 2017 and 2021.
However, Bernstein analysts Gautam Chhugani and Mahika Sapra believe that the advent of Bitcoin exchange-traded funds (ETFs) and the ensuing fear of missing out (FOMO) will catalyze Bitcoin to achieve unprecedented highs.
ETFs fueling FOMO fire
According to Chhugani and Sapra, Bitcoin ETFs have emerged as significant catalysts driving the price of Bitcoin upwards.
They point to the dramatic decrease in outflows from Grayscale Bitcoin Trust, now reduced to approximately $50 million, alongside the nearly $1 billion influx into new ETFs over the last two trading sessions.
In the midst of this burgeoning optimism, the resilience of Bitcoin investors, often referred to as "diamond hands," has become increasingly apparent.
These are the individuals who have held onto their investments through the volatile cycles of the cryptocurrency market.
According to Ki Young Ju, buyers from the 2021 bull cycle are now nearing the break-even point as Bitcoin approaches $48,000, a milestone they have been waiting almost three years to see again. This steadfastness is commended and seen as a bullish sign for the market's future.
Yuri MolchanBernstein's initial prediction of a post-halving rally has been bolstered by the successful launch and continuous inflow into ETFs.
Note of caution amid rally
However, a word of caution is advised for enthusiastic traders. According to a recent analysis by Ali from @ali_charts, Bitcoin has exhibited a pattern of entering brief correction phases whenever the 30-day market value to realized value (MVRV) ratio exceeds 11.50%.
With the MVRV ratio crossing this threshold once again, it serves as a precautionary signal for traders, indicating that while the prospects for Bitcoin are bullish, the path forward may still hold potential corrections.
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