It seems like Bitcoin has finally taken a breather at the key resistance resting at the $45k mark. As we eagerly watch its next move, the big question is whether Bitcoin will take a step back or make a push towards the sought-after $50,000 mark.
Analysts from CryptoQuant, a well-regarded market analysis firm, foresee an optimistic trajectory for Bitcoin’s value in early 2024. Let’s dive into their insights!
Hopes Run High!
The experts at CryptoQuant, a trusted market analysis firm, bring some good news for Bitcoin enthusiasts. They’ve crunched the numbers and predict a potential rise to somewhere between $50,000 and $53,000 in the early months of 2024. The report dives into positive signs seen through the realized price metric, indicating a promising future for market growth.
What’s Next for Bitcoin: Looking at the Metrics
According to CryptoQuant analysts, looking at metrics like market capitalization, user activity, transaction volume, and the Metcalfe price valuation band gives us a positive forecast. The report introduces a tool called the “Bitcoin bull-bear market cycle indicator,” suggesting we’re in a full bull market but also giving a heads up about a potential “overheated bull phase” that has historically led to pauses or corrections in price rallies.
However, amid the positive vibes, the report throws in a cautionary note. Currently, 86% of the circulating Bitcoin supply is considered profitable, which might signal market tops or short-term declines. High funding rates also add to worries about a potential market correction.
Key Factors
Despite the caution, overall feelings in the market are optimistic, driven by excitement about two major events. Firstly, the upcoming Bitcoin halving and secondly, the possible approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). If approved, this would be a historic move as the first ETF directly tracking Bitcoin.
Also Read: Bitcoin ETF Blowout? SEC Talks Heat Up with Major Asset Managers
Will History Repeat Itself?
Adding to the excitement, analysts at Standard Chartered, a major UK bank, offer an even more positive projection. They see Bitcoin’s value potentially skyrocketing to an impressive $120,000 by the end of the upcoming year. The reason behind this bold prediction is the increased profitability for Bitcoin miners. As they earn more for each Bitcoin mined, a decrease in available supply could potentially push Bitcoin’s price higher.
Drawing parallels with past events where BTC saw substantial surges, the big question arises: Can Bitcoin pull off a similar feat? At present, Bitcoin is valued at $43,697, and the crypto community is eagerly watching to see if it will create another noteworthy chapter in its price history.
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Source: https://coinpedia.org/news/cryptoquant-predicts-btc-price-to-hit-53k-in-coming-month-is-this-the-right-time-to-buy-bitcoin/