Bitcoin’s (BTC) price could continue its uptrend and triple its market capitalization, propelling its price above $260,000, according to founder and CEO of on-chain and market analytics firm CryptoQuant Ki Young Ju.
“Bitcoin network fundamentals could support a market cap three times its current size compared to the last cyclical top,” Young Ju explained in a May 8 post on X.
Young Ju was referring to a chart comparing BTC’s price and the associated hash rate to market capitalization ratio, highlighting the crypto’s ongoing volatility and the resilience of the Bitcoin network.
The chart reveals that Bitcoin’s hash rate to market cap ratio has increased significantly in 2024, which suggests a possible increase in market activity and investor interest.
The hash rate to market cap ratio assesses the growth of mining activity relative to the market capitalization.
If this ratio continues to grow, Young Ju declared it could “potentially sustain” Bitcoin’s price to $265,000.
Bitcoin: hash rate vs. market cap ratio. Source: CryptoQuant
In response, analyst and trader Crypto Ceaser pointed out that Young Ju’s views aligned with their analysis, which showed that BTC had formed a large cup-and-handle pattern on the weekly chart.
The setup forms when an asset in a bullish trend retraces twice, first in a wide, shallow move forming the cup and then in a smaller dip forming the handle. The cup-and-handle pattern is a bullish continuation pattern that usually forms during a price consolidation period.
If confirmed, the chart projected a BTC rally toward the technical target of the governing chart pattern at $273,693.
“Whilst this target is particularly high, it is a legitimate target and technically a diminished return (measured from low to high).”BTC/USD weekly chart. Source: Crypto Caesar
Crypto Caesar explained that BTC’s price is currently in a “critical area,” consolidating below its all-time highs.
He added:
“If Bitcoin can start to trend above ATH’s this summer, then I anticipate a strong rally to the upside and potentially a shorter cycle.”
Although it is crucial that Bitcoin holds…
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