James Check, crypto analyst (also known as Checkmatey) predicted that Bitcoin could move further upwards. However, he warned of an “escape speed” which could send the Price of flagship crypto plummets.
What Escape Velocity Means and How It Affects Bitcoin
Simply put, escape velocity is the minimum speed at which a person or object must escape the Earth’s gravitational pull (i.e. the force that pulls them back to Earth). Crypto analyst James Check referred to this term while noting that it is likely that Bitcoin has not yet reached the point of “euphoric escape velocity.”
This suggests that the crypto token has not yet reached a point where its price can be said to be unlikely to surpass a critical support level such as $70,000. The analyst noted that Bitcoin not reaching escape velocity is a “good thing.” He further explained that this indicates that the market is “unlikely to be overexploited, overboughtand oversaturated.
The check mentions that a break above $73,000 would turn short-term holders (STH) in “sufficient profit”, leading to some resistance to the price of Bitcoin. Basically, the analyst suggested that Bitcoin reaching this price level could lead to a wave of selling from these short-term holders, which could cause the Bitcoin price to stagnate or even decline.
However, things might as well be going well since Check added that the $73,000 level This could also be the time when a “escape velocity phase shift” takes place for the Bitcoin price. Bitcoin reaching $73,000 is also important because it is close to its current all-time high (ATH) of $73,750.
While pointing out an inverse head and shoulders pattern that had formed on Bitcoin’s chart, crypto analyst Crypto Jebb mentioned that there is a “high probability” that Bitcoin will see a rise to $100,000 if it rises above $73,800.
Another wave of demand emerges
James Check noted that the market is seeing the first signs of a new wave of demand it could send Bitcoin towards a new ATH. He pointed out that Spot Bitcoin ETFs appear to have gone from a four-week streak of net outflows to net inflows, with these funds seeing more than $1.2 billion net collection in recent weeks.
The crypto analyst says this event “could well be the starting point of this second wave of demand” if the net outflows phase is over. Overall, Check seemed optimistic about Bitcoin’s future trajectory, as he also noted that the crypto token was breaking out of two months of healthy consolidation.
Based on this, he said he would not be surprised if Bitcoin was close to setting a new all-time high. At the time of writing, Bitcoin is trading at around $69,400, down over the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
