Bitcoin (BTC) may be preparing to initiate a new rally by entering a critical zone in on-chain data.
Axel Adler Jr., an expert from the on-chain analysis company CryptoQuant, evaluated the current state of Bitcoin and three possible price scenarios that could occur in the next six months. According to Adler, one of the important indicators for BTC, the NUPL/MVRV ratio, is currently at the level of 0.8, and this situation may indicate the beginning of a new upward trend.
The analysis focuses on three different scenarios that will shape the future of the Bitcoin price:
Bull scenario: Bitcoin could be 175 thousand dollars
If the NUPL/MVRV ratio exceeds the level of 1.0 and holds above this level, a new upward momentum will form in on-chain metrics. In such a case, it is anticipated that the price of Bitcoin could reach levels of 150 thousand to 175 thousand dollars, following the logic of the rallies in 2017 and 2021.
Consolidation scenario: BTC can move sideways up to 110 thousand dollars
According to the second scenario, if the ratio continues to stay within the current range of (0.8-1.0), the market will consolidate in a wide corridor at levels of 90 thousand to 110 thousand dollars. In this case, investors will maintain their positions, but new entries will remain limited.
Correction scenario: It may pull back to 85 thousand dollars in the short term.
In the third and most negative scenario, if the ratio falls to 0.75, short-term investors are likely to start profit-taking. In this case, the price may correct towards the range of $70K to $85K. Adler notes that this scenario is less likely since a correction has already taken place recently.
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A Critical Period Has Begun for Bitcoin: Here Are 3 Scenarios That Will Determine Its Price! - Koin Bulletin
Bitcoin (BTC) may be preparing to initiate a new rally by entering a critical zone in on-chain data.
Axel Adler Jr., an expert from the on-chain analysis company CryptoQuant, evaluated the current state of Bitcoin and three possible price scenarios that could occur in the next six months. According to Adler, one of the important indicators for BTC, the NUPL/MVRV ratio, is currently at the level of 0.8, and this situation may indicate the beginning of a new upward trend.
The analysis focuses on three different scenarios that will shape the future of the Bitcoin price:
Bull scenario: Bitcoin could be 175 thousand dollars
If the NUPL/MVRV ratio exceeds the level of 1.0 and holds above this level, a new upward momentum will form in on-chain metrics. In such a case, it is anticipated that the price of Bitcoin could reach levels of 150 thousand to 175 thousand dollars, following the logic of the rallies in 2017 and 2021.
Consolidation scenario: BTC can move sideways up to 110 thousand dollars
According to the second scenario, if the ratio continues to stay within the current range of (0.8-1.0), the market will consolidate in a wide corridor at levels of 90 thousand to 110 thousand dollars. In this case, investors will maintain their positions, but new entries will remain limited.
Correction scenario: It may pull back to 85 thousand dollars in the short term.
In the third and most negative scenario, if the ratio falls to 0.75, short-term investors are likely to start profit-taking. In this case, the price may correct towards the range of $70K to $85K. Adler notes that this scenario is less likely since a correction has already taken place recently.