Analyst Ali Martinez suggests that Bitcoin (BTC) has further growth potential during this current bull market. Key indicators, such as a declining MVRV ratio and negative netflows from exchanges, support the prospect of additional gains in the near future.
Bitcoin has been on a consistent upward trajectory in recent months. Following Donald Trump's victory in the U.S. presidential elections, BTC experienced significant growth. Trading below $70,000 prior to the election, Bitcoin surpassed the psychological milestone of $100,000 a month later. Despite volatility, it continued to climb, reaching nearly $110,000 just before Trump's inauguration. After some fluctuations, Bitcoin stabilized at approximately $105,000, according to CoinGecko data.
Many industry experts believe Bitcoin has not yet reached its peak in this bull cycle. Renowned analyst Ali Martinez predicts BTC could rise to as high as $184,000 before transitioning to a bearish phase. This prediction is based on the observation that cycle shifts typically occur when Bitcoin's price exceeds 2.4 times the 200-day Simple Moving Average, currently around $184,600.
Various signs suggest that Bitcoin may continue to prosper in the coming months. Historically, February has been a strong month for BTC, with notable double-digit gains in eight of the past twelve years. This February is particularly significant as it follows a halving event, and prior post-halving Februaries have seen impressive price increases.
Bitcoin's Market Value to Realized Value (MVRV) ratio and exchange netflows also provide insights. The MVRV has been below the healthy threshold of 2.5 recently, indicating possible undervaluation. Additionally, recent negative netflows from exchanges suggest a move towards self-custody, easing immediate selling pressure.
Martinez is not alone in his optimistic outlook for Bitcoin. Another analyst, Captain Faibik, identified a "broadening wedge pattern," forecasting a potential $120,000 target by February. Analysts Michael van de Poppe and Jelle also maintain a bullish stance. Van de Poppe anticipates a new all-time high in the coming weeks, while Jelle sees $110,000 as a pivotal resistance level before new price discoveries are possible.