Bitcoin Spikes: Analyst Sees $40,000 Target Before ‘Hard Correction’

Major coins were trading in the green late Monday, as the cryptocurrency’s market capitalization rose 2.79% over the past 24 hours to $1.13 trillion.

Cryptocurrency Gains (+/-) Price
Bitcoin +3.03% $24,822
Ethereum +2.22% $1701
Dogecoin +1.88% $0.088

What happened: The largest cryptocurrency by market capitalization, Bitcoin (CRYPTO: BTC), traded up over 3% to $24,882 and Ethereum (CRYPTO: ETH) changed hands at $1,701, up 2.22% in the last 24 hours. Dogecoin (CRYPTO: DOGE) was up 1.88% in the last 24 hours, trading at $0.088.

The US stock markets were closed on Monday for President’s Day.

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To which the investors look ahead Coinbase’s (NASDAQ:COIN) upcoming earnings report, expectations have been tempered given recent regulatory pressure from the US to limit banking access for cryptocurrency operations.

Analyst notes: Cryptocurrency Analyst Michael van de Poppe said corrections in Bitcoin are likely to remain relatively shallow. He predicts that Bitcoin could reach $35,000 to $40,000 before a “hard correction” to $20,000 to $25,000 in the second half of 2023.

Pseudonymous analyst Kaelo think the ETH/BTC ratio still looks rubbish. According to him, once Bitcoin pushes past the $25,000 range and begins to accelerate upwards, it is likely that we will see a significant impact on altcoins compared to Bitcoin.

Analyzing the chain data, analyst Benjamin Cowen predicted that Bitcoin could remain within a certain range for most of 2023. The indicator Cowen used suggests that this range could theoretically extend all the way to 2024 before a sustained bull market rally.

“I would argue that what you’re most likely to see this year is a recovery year, where you spend about half the time moving higher and half the time moving lower. You can break it up into different months , so you know 2018, 2014, 2022, we had eight or nine red months, but in the recovery years it’s split more or less half and half,” Cowen said.
“And I think you’re probably going to see the MVRV Z-score do something like that, where it comes back above the zero line like it is right now, and eventually it’s probably going to come back below it again. And we’re just spending some time consolidating.”

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