Bitcoin Could Reach $91,000 in Current Cycle, On-Chain Data Suggests
The Essentials in Brief
Current on-chain data suggests that Bitcoin (BTC) is still far from the potential peak of this cycle. Despite a possible drop to 60,000 US dollars and a subsequent bear phase, analyses show that Bitcoin has the potential to reach the 91,000 US dollar mark in this cycle. A deeper look into the liquidation heatmap and the NVT ratio provides interesting insights into the short- and long-term prospects of Bitcoin.
Understanding the Current Market Situation
The analysis of the Short-Term Holder (STH) support indicates that a drop below 58,900 US dollars could invalidate almost all theses about an imminent bull market. In addition, the peak of the Cumulative Volume Delta (CVD), which measures the net difference between buying and selling pressure over a medium to long-term period, points to a possible price reduction. Despite these warning signals, a washout of long-leverage positions down to 60,000 US dollars could pave the way for a price recovery between 72,000 and 75,000 US dollars.
The Role of the Liquidation Heatmap
The liquidation heatmap, which can predict large liquidation events, currently shows that Bitcoin may be heading towards 66,638 US dollars, where contracts worth 7.18 million US dollars could be liquidated. Should the price continue to fall, the next critical zone could be at 64,580 US dollars, with potential liquidations of open positions worth 29.17 million US dollars on Binance alone.
The NVT Ratio and Its Implications
The Network Value to Transactions (NVT) ratio, which indicates whether a cryptocurrency is over- or undervalued, currently shows that Bitcoin may be overvalued for the current market conditions. If this value remains high in the coming days, this could mean a further correction of the Bitcoin price. Nevertheless, the long-term forecast remains positive, with predictions that Bitcoin could reach 91,000 US dollars in this cycle and up to 650,000 US dollars in the coming years.
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Our Assessment
Despite the short-term risks and the possibility of a further correction, the on-chain data and analyses show that Bitcoin has the potential to overcome the current bears and reach significant heights. The long-term prospects, especially with the introduction of new Bitcoin ETFs, support an optimistic scenario for Bitcoin investors. As always, it is important to closely monitor market developments and base investment decisions on comprehensive analyses and personal risk tolerance.
Sources: Coinglass, Santiment
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| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
|
| Price | $97,962.00 |
| 24h % | 4.89 % |
| 7d % | 7.49 % |
| 30d % | 45.98 % |
| 60d % | 56.41 % |
| 1y % | 162.24 % |
| Market Cap | $1,939,179,374,684.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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