Bitcoin continued its bullish momentum late on Sunday March 23rd. This robust movement earned it its strongest weekly performance in more than two months. The rally pushed Bitcoin up 4.24% to an intra-day high at $88,804, providing a weekly close above $84,600. This has boosted the chances of BTC potentially hitting $90,000 soon, analysts have claimed.
Bitcoin’s open interest (OI) has surged by more than $1.5 billion in the past 24 hours, per Velo data. Onchain metrics indicate the current price cycle is a positive consolidation, building even more optimism for further upside ahead.
Analyzing Bitcoin's Growth Stage
Bitcoin researcher Axel Adler Jr. takes a look at the CVDD metric. He contends that this is a sign that the market has yet to fully reach a “growth stage.” The CVDD metric helps track the level of selling occurring from long-term holders (HODLers), which can give hints at overall market sentiment and possible trend reversals.
Adler did note that the current price cycle represents a healthy consolidation. According to Murad, this is in contrast to the onset of a bear market, based on on-chain metrics. Sheldon wrote Bitcoin might rise as high as $130,000 in the next 90 days in a recent Substack post.
The ongoing bull cycle only triggered one sell signal— back in March 2024 — suggesting the upward momentum has deeper roots.
Technical Indicators and Price Targets
From a technical standpoint, Bitcoin set a new high at $88,750 above last week’s high. BTC has retaken a positive position on the charts, closing above the daily chart’s 200-day exponential moving average (EMA).
So the weekend price rally is more often than not a price spike that occurs when trading volume is low. Bigger market players typically sit on the sidelines until the beginning of the week. This can add to the volatility, exacerbating price swings and opening up arbitrage opportunities to profit on short-term price shifts.
This new wave of upward momentum on Sunday, March 23rd late in the day has significantly raised the odds of BTC testing $90,000.
Investor Price Model and Market Sentiment
Bitcoin’s Investor Price Model involves realizing the realized cap, thermo cap, investor price, and bitcoin supply. It demonstrates how BTC is actually still far from moving into “overheated” territory for this cycle. Now, the Investor Price Model issued a sell signal midway through 2021.
That indicates plenty of headroom for additional price gains before the overall market hits a likely top. The model uses the realized cap, thermo cap, investor price, and bitcoins in supply.
With the current positioning of the Investor Price Model, there remains significant continued growth potential for Bitcoin in the near term.
