CryptoQuant Report Predicts bitcoin BTC
-1.95%
From the current price of $43,000, it is likely to exceed $50,000 in early 2024.
The forecast is based on analyzing Bitcoin’s user activity using the Metcalfe price valuation band metric, taking into account factors such as market capitalization, trading volume, and user activity. The report suggested that Bitcoin’s target price range could be $50,000 to $53,000 early next year.
“Bitcoin could target $50,000 to $53,000 depending on how network activity is valued,” CryptoQuant analysts said.
According to the latest data from CryptoQuant, Bitcoin supply yield is currently over 88%.
Selling pressure may increase
The report cited a “Bitcoin bull-bear market cycle indicator” that indicates a current bull market but approaching an “overheated bull phase,” which has historically coincided with a pause or correction in price gains.
CryptoQuant analysts noted that Bitcoin’s profit supply is over 88%, and with a significant portion of the circulating supply being profitable, selling pressure could increase. The report therefore warns of a potential short-term correction, noting that high circulating supply levels in terms of profits often coincide with local market highs.
The report said, “Considering that 86% of the current distribution volume is turning into surplus and the funding ratio has also increased noticeably, caution is needed as there is a possibility of a short-term adjustment.” According to current data from CryptoQuant, the circulating supply of Bitcoin generating revenue has now increased to over 88%. The report added that this high level of profit cycle supply was “historically consistent with the region’s highest levels.”
Bitcoin was down more than 2% as of 7:10 a.m. ET on Thursday, trading at $43,100. The overall cryptocurrency market capitalization has almost fallen. 1% today, Its current value is $1.64 trillion.
Nmerous analysts maintained their positive outlook for 2024, a sentiment reflected in the recent price surge. This is due to several key factors that could drive the upward trend, namely the Bitcoin halving event scheduled for April 2024 and the possible approval of a spot Bitcoin ETF.
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