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

Major coins traded in the green late Monday evening, with the cryptocurrency’s market cap rising 2.79% in the past 24 hours to $1.13 trillion.

Cryptocurrency Earnings (+/-) Price
Bitcoin +3.03% $24,822
Ethereum +2.22% $1,701
Dogecoin +1.88% $0.088

What happened: Largest cryptocurrency by market value, Bitcoin (CRYPTO:BTC), was trading up more than 3% at $24,882 and Ethereum (CRYPTO:ETH) was changing hands at $1,701, up 2.22% in the past 24 hours. Dogecoin (CRYPTO:DOGE) rose 1.88% in the past 24 hours, trading at $0.088.

US equity markets were closed Monday for President’s Day.

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As investors anticipate Coinbase (NASDAQ:COIN) upcoming earnings report, expectations are muted given recent U.S. regulatory pressures to limit banking access for cryptocurrency transactions.

Analyst Notes: Cryptocurrency analyst Michael van de Poppe said Bitcoin’s corrections will likely remain relatively shallow. He predicts that Bitcoin could hit $35,000-$40,000 before a “severe correction” to $20,000-$25,000 in the second half of 2023.

Pseudonymous analyst Advice think the ETH/BTC ratio still looks like trash. According to him, as Bitcoin crosses the $25,000 range and begins to accelerate upwards, it is likely that we will see a significant impact on altcoins compared to Bitcoin.

Analyze on-chain data, analyst Benjamin Cowen predicts that Bitcoin could remain within a defined range for the majority of 2023. The indicator used by Cowen suggests that this range could theoretically extend into 2024 before a sustained bull market rally.

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

Read more: Why ‘Shark Tank’ Kevin O’Leary Says Crypto Investments Are Flooding

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