The price of Bitcoin fell 8% during the last 24 hours and this has raised crypto concerns that the bull run for Bitcoin has come to an end. However, this analysis offers a prognosis far from worries.
Experts run an on-chain analysis
As we reported this week from CryptoTrend, the price of Bitcoin managed to set a new all-time high above $ 64,000. However, the volatile behavior of crypto keeps many investors mired in the face of uncertainty about what will happen next.
If there is something that Bitcoin has taught us, it is to expect not unexpected. Therefore, just as in the blink of an eye, BTC can start its bull run with all its might, it can also stop short and declare it as the end of it.
However, the experts of the crypto community run a series of analyzes that help determine (always with a certain range of error) what the future of Bitcoin could be. In this case we will talk about on-chain analysis of Bitcoin and what it tells the experts.
What is this analysis about? What does it tell us about the future of Bitcoin?
The Bitcoin Blockchain represents a very interesting source of data regarding human behavior around crypto. In this sense, on-chain analysis or chain analysis consists of observing the dynamics of supply and demand, human psychology and its decisions, cat patterns, hodling and mining hash.
With this in mind, yesterday, Jakub Dziadkowiec, a contributor to Yahoo Finance, published his on-chain analysis of Bitcoin, precisely trying to answer the question of whether it is the end of his bullish career. And, curiously, he was not the only one.
Yesterday Chris Voehr, a CoinTelegraph contributor, also presented his analysis of Bitcoin’s on-chain activity.
Indicators and results
Therefore, below we present the results of their analyzes:
- There is a change in long-term investor behavior. The data shows that they are not selling, on the contrary, they accumulate Bitcoin in anticipation of price increases.
- Bitcoin’s liquidity crisis corroborates the previous observation given that it does nothing but increase.
- Glassnode data shows that the total value of Bitcoin futures open interest in major crypto exchanges has exceeded $ 27 billion.
- Chris Voehr suggested that the current on-chain volume suggests that investors are still buying Bitcoin strongly at current price levels.
In this way, Dziadkowiec concludes that the Bitcoin bull market is accelerating, and therefore there is still plenty of room for a further increase.
And, taking into account on-chain volume and NVT premiums, Voehr suggests that the maximum price reached by Bitcoin is not yet the top of the bull run. In this sense, the chain analysis suggests that the next major short-term ceiling could likely be $ 95,000 or more.
But, even more interesting, the analyst believes that a possible bull cycle top could be $ 166,000 or more.