- Bitcoin veteran trader who predicted the 2023 crypto bull run sees a massive BTC price rally to $50,000 on one condition.
- Bitcoin miners are still under pressure with rising hashrate, raising concerns of increased selling pressure on BTC.
- Experts argue that Bitcoin’s run-up to $30,000 did not trigger the mania of bull markets in previous cycles.
A crypto analyst who predicted the bull market of 2023 has commented on Bitcoin’s uptrend. The expert believes BTC is primed for a run-up to the $50,000 level; however this a likelihood of a correction in the asset soon.
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Expert predicts massive run in Bitcoin price
The expert that predicted the bull run that started at the beginning of 2023 has commented on BTC’s price rally. DonAlt, a technical analyst, evaluated the Bitcoin price chart and predicted a BTC price rally to the $50,000 level. The analyst’s thesis marks four key phases, the bear market, “whatever”, indecision and the bull market.
According to DonAlt’s thesis, Bitcoin is currently in the phase of indecision. A bull run follows this phase in BTC price.
BTC/USD 1W price chart
Therefore, DonAlt predicted a pullback in Bitcoin price after the asset crosses key resistance at $33,000.
Bitcoin rally to $50,000 will not be a straight path
DonAlt has predicted a correction in Bitcoin price on its way to the $50,000 bullish target. The analyst explains the phase of the Bitcoin price cycle, “indecision.”
BTC/USD 1D price chart
The expert expects the asset to pull back and coil ahead of the explosive move to $50,000 within the next few months of 2023. The analyst marks the support at $19,500, $32,290 and resistance at $62,500 as the three key levels in the Bitcoin price chart.
It’s important to note that miners are still under pressure with the Bitcoin price above $30,000. The metric “Difficulty Adjusted Puell Multiple” is used to ascertain the challenges weighing on miners. While the Puell Multiple measures the ratio between daily Bitcoin miner revenue (in USD) and 365-day moving average (MA), it does not consider the difficulty of mining the asset, measured by the hashrate.
The difficulty-adjusted Puell multiple measures miners' profitability while considering the difficulty of mining Bitcoin.
Bitcoin miners under pressure, what this means for BTC
Miners typically sell their Bitcoin rewards to cover their operating costs. This is one of the key reasons why miner profitability and the state of miners in the network impact the asset’s price.
Bitcoin difficulty-adjusted Puell Multiple
According to the difficulty-adjusted Puell, multiple miners are under pressure, with Bitcoin price above $30,000, since the hashrate has climbed considerably. The metric is at 0.88, a value below 1 signals that miners still need to be profitable.
When comparing the current Bitcoin price rally to bull markets in previous cycles, experts note that the “mania” surrounding BTC price action is missing.
Bitcoin price rally lacks the “crypto mania” of previous bull runs
In addition to the on-chain metrics and technical indicators, the sentiment among traders is critical to an asset’s price rally. Experts have identified a lack of “mania” or mass bullishness among market participants in BTC’s recent run-up to $30,000.
Oliver Linch, the CEO of Bittrex Global, told attendees at a crypto conference in Paris:
The sentiment here doesn’t seem like the last few weeks mean that we can pretend that the previous ten months never happened.
Bitcoin’s price rally does not wipe out the events of the past ten months, the losses suffered by market participants and the loss of confidence among retail and institutional investors through the tumultuous events.
Simon Taylor, head of the strategy at Sardine, argues the mania or gusto previously seen when the asset climbed to a critical level between $30,000 and $40,000 is missing, while there is quiet behind-the-scenes progress in Bitcoin. This implies that BTC’s recent rally is inconsistent with previous bull markets, and there is scope for a likely correction in the asset.
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