Rare on-chain Bitcoin phase has occurred - Could $120,000 be the upcoming target?
Maybe Bitcoin Might Just Be Sitting Pretty:
- The whole bitcoin UTXO age spectrum is now bleeding green, hinting at a solidified investor confidence and a stronger force across the market.
- The Stock-to-Flow and NVT Ratios have unexpectedly climbed high, intertwining a sense of scarcity with BTC's recent price surge.
Oh, Bitcoin [BTC], baby, you've got the entire blockchain feeling all bullish and stuff!
But why, you ask? Well, because all the old, middle, and baby UTXO (Unspent Transaction Output) age bands are now grinning from ear to ear—just because every coin they hold happened to get a little richer.
This revelation, my friend, solidifies investor confidence like never before and signals that the folks holding onto their bitcoins—even the short-term Apple stock-types—are feeling pumped about their profits. And who wouldn't be, after Bitcoin nudged past the $98,138 milestone? Now, ain't that grand? At the time of writing, the price was soaring up to $102,942, showing a cool 3.32% daily increase.
So, what does this mean? Basically, with so many cryptoheads in the green, we might be in store for some more of that juicy price growth!
Are the 'Big Kahunas' Hiking Up Their Skirts?:
Large-scale Hodlers, or what some enthusiasts call 'the whales,' seem to be up to something fishy. Or should I say "savvy."
The 7-day Exchange Netflow Ratio, a fancy term we'll call the "Whale Watch," has skyrocketed by an astounding 69%. Some say it means these wily whales are getting ready to sell or shift things around nearby some major resistance.
You don't have to be Warren Buffet to know that these netflow spikes near price ceilings commonly signal some major market shifts ahead. So, all those inflows galloping into the chains indicate that even the more cautious or anticipatory crypto-enthusiasts are shifting their bitcoins around.
Data Source: IntoTheBlock
In addition, transaction volume across low- to high-level investors has expanded! Transfers between $10K-$100K have jumped a whopping 25.85%, and $1M-$10M quantities have swelled by 26.18%. Looks like both retail peeps and institutional players are stepping up their game. Such synchronized activity usually makes the market structure oh-so-strong and propels the upward march!
Data Source: IntoTheBlock
Is All This Activity Putting a Spring in Bitcoin's Step?:
The on-chain volley is also making a positive impact. Active Addresses have popped up by 8.79%, with New Addresses hot on their heels at an 8.13% increase this week. In other words, Bitcoin's new audience is growing!
Historically, growing address counts have often coincided with the early phases of potent bullish cycles. Plus, increasingly more new users popping up mean less dependency on speculative momentum and more emphasis on organic demand.
Data Source: IntoTheBlock
Are the 'Valuation Metrics' Joining the Party?:
You guessed it! The 'valuation metrics' made a grand entrance as well.
Bitcoin's Stock-to-Flow Ratio went up by a verdant 75% post-halving, indicating that the supply of Bitcoin is becoming increasingly rare, as if it's about to disappear like a mirage in the desert! Simultaneously, the NVT (Network Value to Transaction) ratio sneaked up 19.01%, showing that the price growth is being propped up by expanding network utility—the more transactions the better, right?
So, in simple terms, what we're getting at here is that Bitcoin's value is perfectly aligned with strong bullish momentum, a situation where scarcity complements the growing usefulness of BTC!
Is BTC All Set to Break Out of the 'Cup and Handle' Pattern?:
Bitcoin seems to have found the perfect mould, forming a crisp 'cup and handle' pattern. Its 'neckline resistance'—the stage for its grand exit—powers up around the $108K mark. If Bitcoin breaks out of this conundrum above the neckline, we might see it surge toward a whopping $120K!
The ongoing rally possesses structure, volume, on-chain support, and a glint of historical success when it comes to speedy price expansion. Breakouts from this pattern have typically led to rocket-like price marches.
Traders the world over are cautiously watching these levels. If the buyers conciously take control, Bitcoin might burst through the price discovery phase doors! The days ahead are crucial for confirming this tantalizing bullish scenario.
Data Source: TradingView
Finally, Bitcoin is now leading with the full-chain profitability, whale shenanigans, and a strong technical structure. So, take a wild guess, who'll chalk up the victories in this game? The bulls, of course!
But hang on - the $108K resistance level is still a towering obstacle. If the buyers can clear this hurdle with gusto, we might be looking at a golden road to new all-time highs!
The foundation for this move appears to be stronger than those seen in previous rallies, built upon network usage and scarcity. Could this be the launchpad? Sure looks like it.
Take a Survey: Stand a Chance to Win $500 USDT Bitcoin Breaks $100K – But Why Is the BTC ETF Adoption Suddenly Slowing Down?
- Share
- Tweet
- The unexpected rise in both the Stock-to-Flow and NVT Ratios in Bitcoin (BTC) might indicate a strengthening sense of scarcity, contributing to its recent price surge.
- The whole blockchain is feeling bullish due to the increased profitability of older, middle, and younger Unspent Transaction Output (UTXO) age bands, which strengthens investor confidence and signals potential for more price growth.
- The Whale Watch (7-day Exchange Netflow Ratio) has skyrocketed, suggesting that large-scale Bitcoin hodlers, or 'the whales,' might be preparing to sell or shift their assets, potentially leading to market shifts.
- Bitcoin's Stock-to-Flow Ratio has increased post-halving, indicating that the supply of Bitcoin is becoming more scarce, while the NVT (Network Value to Transaction) ratio has surged, demonstrating that the price growth is being supported by expanding network utility.
