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

Major coins traded in the green late evening Monday, as the cryptocurrency market cap rose 2.79% to $1.13 trillion in the past 24 hours.

What happened: The largest cryptocurrency by market value, Bitcoin (CRYPTO: BTC), traded more than 3% higher at $24,882 and Ethereum (CRYPTO: ETH) changed hands for $1,701, up 2.22% in the past 24 hours. Dogecoin (CRYPTO: DOGE) is up 1.88% in the past 24 hours and is trading at $0.088.

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

view more: Best Crypto Day Trading Strategies

What investors look for Coinbases (NASDAQ:COIN) earnings report, expectations are subdued given recent US regulatory pressure to restrict access to banks for cryptocurrency operations.

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

Corrections remain relatively superficial.

I think we will continue the run to $35-40K before we get a hard correction, maybe even to $20-25K.

Maximize profits, start allocating to $USDT the higher we get, buy on the correction in the second half of 2023.

— Michael van de Poppe (@CryptoMichNL) February 20, 2023

pseudonymous analyst Accompaniment believes the ETH/BTC ratio still looks like garbage. According to him, if Bitcoin moves past the $25,000 range and starts to accelerate upwards, it is likely that we will see a significant impact on altcoins compared to Bitcoin.

$ETH / $BTC ratio still looks like garbage.

When Bitcoin finally starts to accelerate above this $25,000 range, I still believe we will see real pain for alts versus BTC.

USD values ​​will still rise, but Bitcoin will remind everyone that it is the king of bear market rallies. pic.twitter.com/dgPIETWdzE

— KALEO (@CryptoKaleo) February 20, 2023

Analyzing the on-chain data, analyst Benjamin Cowen predicted that Bitcoin could stay within a certain range for most of 2023. The indicator Cowen used suggests that this range could theoretically extend to 2024 ahead of 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 half the time going down. You can break that down into different months, so you know that 2018, 2014, 2022, we had eight or nine red months, but in the recovery years it’s kind of split in half and half,” Cowen said.
“And I think you’re probably going to see the MVRV Z-score score do something like that, where it gets back above the zero line as it is right now, and eventually it probably goes back down. And we’re just spending some time on it consolidate.”

Read Next: Why Kevin O’Leary of ‘Shark Tank’ says crypto investment is floundering