Bitcoin Price Shows Signs of Stability Amid Bullish Predictions

Bitcoin currently sits at $118,800 with a 2% gain today, as major holders take profits. Analysts suggest the market isn’t overheated and see potential for further gains, predicting Bitcoin could possibly reach $400,000 by year’s end while the altcoins surge.

Bitcoin has been experiencing a cooling period recently, particularly on shorter timeframes, with the altcoin market garnering upward momentum. Major holders of Bitcoin appear to be cashing in profits at its current price levels, contributing to this state of affairs.

Currently, Bitcoin is trading at approximately $118,800, which reflects a 2% increase over the past day and a notable 9% increase in the week, according to CoinGecko. In contrast, digital assets like Ethereum, XRP, and Dogecoin have surged by over 16% in similar timeframes.

After a decisive rise from below the $100,000 mark, Bitcoin has managed to break a long-standing downtrend, reaching new all-time highs close to its present value. According to an analysis by Glassnode, there has been a notable uptick in profit-taking among short-term Bitcoin holders. In a spectacular 24-hour period, these holders reportedly withdrew over $3.5 billion in profits, which led to Bitcoin losing some momentum and entering a sideways trading pattern.

While Bitcoin’s remarkable bull run continues, there are whispers of a potential significant pullback from the $118,000 range down to a support zone around $110,000. Yet, amid these uncertainties, a report from CryptoQuant based on the assessments of analyst Crypto Dan indicates that the bull run still has some capacity for growth. Evidence from their analysis, illustrated in an accompanying chart, suggests that Bitcoin’s market metrics are far from showing signs of overheating — a stark contrast to the peaks witnessed in March and December 2024.

CryptoQuant noted,
“Unlike those months, on-chain data has yet to reflect an overheated state in the market. “

Despite the price climbing higher, the decreasing signs of overheating compared to earlier short-term highs imply that Bitcoin could continue its ascent, with a substantial potential for growth anticipated in the year’s latter half.

In light of this, if bullish sentiment holds strong, Bitcoin could be on the trajectory for further gains. As previously reported by NewsBTC, a leading analyst has remarked on the unprecedented levels of Bitcoin adoption today, suggesting that “the real Bitcoin move is only beginning.” The analyst also expressed a high degree of confidence in seeing Bitcoin reach $400,000 by year’s end, a target that might even be conservative in the grand scheme of things.