The Bitcoin blockchain makes it possible to substantiate the price movements of the digital currency with data. Now Bitcoin has started a gigantic run upwards in recent months and the big question is of course how long we can enjoy this positive momentum.
Is Bitcoin already near its top for this market cycle?
‘Bitcoin not yet close to its top’
Based on the so-called HODL Waves, the Bitcoin price is currently far from its top. The HODL Waves map the behavior of Bitcoin investors.
What you usually see is that long-term investors decide to sell their coins around Bitcoin’s price peaks. This causes the red-orange colored HODL Waves to shoot up.
Basically, this means Bitcoin is moving from older addresses to new addresses. Old investors sell their Bitcoin to new investors for a profit.
As you can see in the graph above, this is currently little to none. Thus, based on this chart, we can say that Bitcoin may still have a long way to go during this bull cycle.
Where can the Bitcoin price go?
The second question is: where can the Bitcoin price end up during this cycle?
That’s a question thousands of analysts on Twitter and the rest of the internet are trying to answer. During a bull market, the most insane predictions come flying around our heads.
During the previous bull market, the focus was very much on the Bitcoin price of 100,000 dollars. Ultimately, the digital currency was unable to break through that trend. Which may have been due to Tesla’s decision to no longer accept Bitcoin as a means of payment and the mining ban in China.
Once again, a Bitcoin price of $100,000 is expected and based on the current performance of the Spot Bitcoin ETFs, that seems a serious possibility. However, don’t forget that there are other things that could throw a spanner in the works this year.
Consider, for example, an unexpected recession in the United States. Nobody is counting on it anymore and that is precisely why it could cause significant price drops in 2024.
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Source: https://newsbit.nl/bitcoin-koers-nog-lang-niet-op-zijn-top/
