With the rising prices (BTC) that Bitcoin holds, the market again shows impulse, which could contribute to the increase.
According to analyst Axel Adler JR, There are three different scenarios that can be separated by the price of Bitcoin over the next six months. This is based on the performance of the Bitcoin Compound Index (BCI).
This indicator measures the mobile average of two important metrics. These are the net profit/loss of Bitcoin (NUPL) supply and market value associated with the value created (MVRV).
tool Designed to allow investors to identify peaks and valleys in the market cycle. When this approaches zero, it can be interpreted as the bottom of the cycle. On the other hand, if the index exceeds the 1 mark, this indicates that the end of the upward cycle is approaching.
Thus, this metric serves as an indicator for investors looking for the right moment to buy and sell Bitcoin.
Currently, the ratio is at 0.8, as shown below. This means that for Adler the recent Bitcoin Rally is probably at its inception. However, this does not necessarily mean that prices will rise strongly over the next six months.
BTC will increase to over USD 150,000 in an optimistic scenario
For an optimistic scenario, the index must break the level of 1 and stay above it, thus indicating a new bullish impulse, Adler says. In that case, according to analysts Bitcoin could reach a price of between $150,000 and $175,000 (USD), repeating the logic of the cycles that occurred in 2017 and 2021.
On the other hand, as a basic scenario, he makes it clear that the BCI should be maintained between the range 0.8 and 1. Such a panorama kept participants in position but did not significantly increase the number of exhibitions.
As a result, at this stage, prices rise due to slight demand, but not as much as optimistic scenarios. That’s why it’s likely At that margin, Bitcoin reaches between 90,000 USD and 110,000 USD.
Meanwhile, in a pessimistic scenario, he warns that the index is seen below 0.75, with short-term investors selling to make a profit. So in this case, according to the specialist, the price could carry it between 70,000 USD and 85,000 USD.
Currently, as reported by Cryptonotics, 85% of Bitcoin currency is profiting and will be milder in the market. However, this could motivate them to sell their holdings and make a profit.
but, Adler makes it clear that “the first two scenarios are more likely, given that there have already been fixes.”.
Furthermore, it is worth mentioning that historically, the Bitcoin market has entered a stage of euphoria where gain supply exceeds 90%, leading to a new price record. Therefore, this cycle may not yet see its maximum value.
Bitcoin recovered US$97,000
Bitcoin hits USD 97,000 today, marking its biggest price in over two months. This means that the assets are almost 10% of the 10% of the past maximum of USD 109,000 registered three months ago.
The move means a minimum 27% rating at USD 76,000 four months ago. This indicates a strengthening level of sales.
“BTC is prepared for another historic breakdown if the capital flow trend continues,” analyst Willie Wu said in price rebound. In this sense, It’s important to see how investors perform So that prices continue to rise.
