Despite bearish concerns, Bitcoin’s quest to surpass its all-time high remains unhampered, according to the Bitcoin Fundamental Index (BFI). A recent analysis by Swissblock Technologies upholds the robustness of the BTC price and dismisses the possibility of a double top, a pattern that could potentially signal a market reversal.
This insight comes amidst historical data suggesting that a return to within 10% of all-time highs usually leads to price discovery. The analysis argues that Bitcoin does not risk a “double top” bear market reversal even with its journey beyond the $107,000 mark.
Swissblock Technologies’ report highlights Bitcoin’s enduring strength, stating it shows “no signs of bearish divergence” when viewed through a range of network indicators. Despite BTC’s proximity to its all-time high, being less than $5,000 away, the cryptocurrency is unlikely to forfeit its push towards price discovery.
The BFI, which combines several existing indicators into a single oscillator, provides insights into the strength of a trend at a particular price point. Since August 2024, the BFI has consistently hovered around the 50/100 mark, regardless of price fluctuations. “Even during the Feb–Mar pullback, it remained neutral, never showing signs of weakness,” the report highlights.
If Bitcoin were to reverse its trajectory now, leaving the all-time high unchallenged, the BFI would already be “breaking down.” However, Swissblock deems this scenario unlikely, concluding that “on-chain strength remains intact,” and that bearish forces will have to “wait.”
This viewpoint resonates with the majority of crypto market participants this month. As previously reported, price discovery is expected to resume sooner rather than later, with one BTC price prediction for this week already set at $116,000.
Network economist Timothy Peterson, based on statistical analysis, predicts a minimum BTC price of $115,000 by the end of June. “Within 50 days, Bitcoin made a new all-time high 98% of the time,” he states, referring to the nearly 300 times Bitcoin has reached within 10% of its all-time high since 2015.
While post-2020 gains have been more modest, with an average increase of 8%, Peterson’s analysis suggests a potential BTC price of up to $125,000.
Investors and traders should conduct their own research as every investment decision entails risk. This article does not offer investment advice or recommendations.
