CryptoQuant experts have admitted the possibility that the price of Bitcoin will break through the $50,000 level at the beginning of 2024, The Block reports.
The forecast is based on an analysis of the activity of digital gold holders. It also takes into account the dynamics of transaction volume, market capitalization and Metcalfe's law in the context of cryptocurrencies.
“Bitcoin can target the range of $50,000-53,000, based on the assessment of network activity,” experts noted.
According to them, the market is now approaching an “overheated bull phase,” which is historically accompanied by pauses and corrections.
Analysts emphasized that the supply of coins “in the black” exceeds 88%. This indicates potential selling pressure and therefore likely short-term corrections.
According to experts, such high levels of unrealized profit “historically coincided with local maximums.”
Among other things, CryptoQuant discovered a revival of Bitcoin whales, “reminiscent of the trends of 2021.”
Analysts also noted a decrease in the overall supply of digital gold in circulation “amid expectations of major market events”:
“Decreased sales from short-term and long-term holders, combined with positive investor expectations, may create conditions for further growth in the value of the first cryptocurrency.”
