On-Chain Indicator Suggests BTC Could Reach Six Figures
A classic on-chain indicator is hinting that Bitcoin (BTC) could reach a price of at least $110,000 during its new bull cycle. Look Into Bitcoin, an on-chain analytics platform, has revealed that Bitcoin's "Terminal Price" is indicating a possible six-figure top for the cryptocurrency.
Forecasts for Bitcoin's Price
With Bitcoin's price reaching its highest levels in 18 months, experts are already speculating on how high it could go in the coming months and years. After the next block subsidy halving in April 2024, targets include $130,000, with late 2025 being a popular deadline for the next cycle top.
Understanding Terminal Price
Terminal Price is a value calculated from Bitcoin's "Transferred Price," which is derived by dividing "Coin Days Destroyed" (CDD) by the existing supply. CDD measures the number of dormant days reset each time a certain amount of BTC moves on-chain, providing insight into hodler intent and activity. Terminal Price is used to estimate long-term BTC price peaks.
Selling Near Terminal Price
Philip Swift, the creator of Look Into Bitcoin, suggests that selling "near" Terminal Price would be a suitable strategy. Not every all-time high reaches Terminal Price, but BTC/USD did hit the trendline during its 2017 all-time high and initial peak in April 2021. The current all-time high of $69,000, seen in November of that year, fell short of Terminal Price.
Waiting for the Pi Cycle Crossover
Swift also highlighted the "Pi Cycle Top" indicator, which uses two moving averages to forecast Bitcoin's long-term highs. The crossover of these moving averages signals the next high, typically with only a few days' notice. Swift questioned whether the Pi Cycle Top indicator would once again accurately identify the top of the Bitcoin cycle.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.
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