According to Ki Young Ju, the founder and CEO of CryptoQuant, Bitcoin’s price has the potential to triple and reach over $260,000 while maintaining its upward trend. On May 8, Young Ju shared on X that the current state of the Bitcoin network fundamentals could support a market value three times higher than its previous peak.
Young Ju referred to a chart that compared Bitcoin’s price and its corresponding hash rate to its market value. This chart highlighted the ongoing volatility of cryptocurrency and the resilience of the Bitcoin network. By 2024, the chart showed a significant increase in the hash rate/market value ratio, suggesting a potential rise in market activities and investor interest.
The hash rate/market value ratio measures the growth of mining activity relative to market value. If this ratio continues to rise, Young Ju believes that Bitcoin’s price could potentially be sustained at $265,000.
In response to Young Ju’s statement, Crypto Ceaser, an analyst and trader, noted that his own analyses align with Young Ju’s views. He pointed out that Bitcoin is forming a significant cup and handle pattern on the weekly chart. This pattern, which is a bullish continuation pattern, is characterized by a wide, shallow movement creating the cup, followed by a smaller dip forming the handle.
If the cup and handle formation is confirmed, the chart predicts a rise in Bitcoin to a technical target of $273,693.
Glassnode analysts also reported on May 7 that the average short-term acquisition price has historically acted as a strong barrier during downtrends and provided solid support during uptrends.
It’s important to note that this article does not provide investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
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