On-Chain Firm Announces Bitcoin's Fair Value: What's Next for BTC?

Bitcoin appears to be going through a period of consolidation and profit-taking after eight weeks of extraordinary price growth. According to data, several large BTC transactions have occurred to crypto exchanges in the last few days, suggesting that some whale addresses may be participating in the sell-off. Looking at historical trends, it is clear that the realized price and all-time A period of 14 to 20 months elapsed between the establishment of the high level.

Bitcoin price is trading above fair value, according to on-chain analytics firm reviews: What could this mean?

Bitcoin Fair Value Metric Review from Glassnode

Bitcoin appears to be going through a period of consolidation and profit-taking after eight weeks of extraordinary price growth. The world's largest crypto has seen incredible growth this year, with a particular spike in mid-October.

However, after Bitcoin reached its annual high on December 8, it appears to have experienced a roughly 6% pullback to the $44,500 level, suggesting some investors are trying to realize their profits. According to several on-chain price models from on-chain data provider Glassnode, Bitcoin's current fair value is currently between $30,000 and $36,000.

The 150% increase in Bitcoin's price this year has led to a surge that has taken it above $44,500, but on-chain data shows that the hot streak has cooled slightly after resistance formed at that price level. This has caused many short-term investors to profit from their holdings.

According to the data, several large BTC transactions have occurred to crypto exchanges in the past few days, suggesting that some whale addresses may be participating in the sell-off.