Bitcoin (BTC) is set to conclude its strongest month since December 2020. Despite approaching all-time highs, analysts suggest that this bull market still has room to run.
The leading cryptocurrency by market capitalization surged by an impressive 44% in February, surpassing milestones like $50,000, $60,000, and reaching a peak of $64,000 on Wednesday. This rally followed a brief pullback below $40,000 after the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S. in late January.
Bitcoin has the potential to achieve its highest month-end price ever if it surpasses $61,357 by midnight UTC, the closing price in October 2021 near the peak of the previous market cycle. Currently, BTC is trading around $61,200.
Despite Bitcoin’s proximity to its all-time high, some analysts believe there’s still more upside potential. Alex Thorn, head of firmwide research at Galaxy, views U.S. spot bitcoin ETFs as a “game changer,” driving steady demand for BTC. Additionally, with around 75% of Bitcoin’s supply held by long-term holders, there’s limited selling pressure at current prices.
On-chain transaction volume and retail interest in crypto remain below previous peak levels, according to IntoTheBlock analysts. Swissblock, a crypto analytics firm, predicts that Bitcoin’s current uptrend is just the beginning, citing sustained buying pressure and bullish signals from oscillators and moving averages.
However, Swissblock advises against impulsive market entry at these elevated levels, suggesting a more prudent approach of waiting for short-term pullbacks for buying opportunities.
In a less optimistic long-term outlook, a JPMorgan analyst report forecasts a potential correction for BTC to as low as $42,000 after the April halving event, when miner rewards will be halved for the fourth time in Bitcoin history.
