Crypto analyst James Check (also known as Checkmatey) predicted that Bitcoin could continue to make further upward moves. But he warned of the “escape velocity” it could send the price of the flagship cryptocurrency is falling rapidly.
What does escape velocity mean and how does it affect Bitcoin
Simply put, escape velocity is the minimum speed at which a person or object must escape gravity (i.e., the force that brings a person back to Earth). Cryptocurrency analyst James Check referred to this term during noticing 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 it can be said that its price is unlikely to fall above a critical support level such as $70,000. The analyst noted that the fact that Bitcoin is not reaching escape velocity is a “good thing.” He further explained that this signals that “the market is unlikely to be overextended, bribedand oversaturated.”
The check mentioned that there would be a break above $73,000 short-term holders (STH) in “sufficient profit”, which leads to some resistance to the price of Bitcoin. Essentially, the analyst suggested that Bitcoin reaching this price level could lead to a wave of selling by these short-term holders, which could cause Bitcoin’s price to fluctuate or even decline.
However, things could also turn out well, as Check added that Level $73,000 may also occur where a “phase shift in escape velocity” takes place for Bitcoin’s price. Bitcoin’s value reaching $73,000 is also significant because it is close to its value current all-time record (ATH) amounting to $73,750.
Highlighting the inverse head and shoulders pattern that has formed on Bitcoin’s chart, cryptocurrency analyst Crypto Jebb mentioned that there is a “high probability” that Bitcoin will rise to $100,000 if it exceeds $73,800.
Another wave of demand is coming
James Check noted that the market is showing early signs of crisis recent wave of demand that could send Bitcoin to recent ATH. He highlighted that the Spot Bitcoin ETFs appear to have turned from a four-week streak of net outflows to net inflows, with the funds seeing over $1.2 billion in net inflows over recent weeks.
The cryptocurrency analyst says the event “could very well be ground zero for a second wave of demand” if the net outflow phase ends. Overall, Check sounded sanguine about Bitcoin’s future trajectory, as he also noted that the cryptocurrency token is emerging from two months of robust consolidation.
Based on this, he stated that he would not be surprised if Bitcoin was on the verge of setting a recent all-time high. Bitcoin is currently trading at around $69,400 as of this writing, down over the last 24 hours. data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
