- BTC price may see further upward movement as the year progresses.
- Many investors are currently holding the royal coin for profit.
According to two CryptoQuant analysts, the story suggests that the value of Bitcoin [BTC] is poised to soar in 2023. Experts shared their predictions based on historical trends and patterns observed in BTC price movements during the 2018 – 2019 market cycle.
Alias Analyzer oinonen_t looked at BTC active on-chain address data during the 2018-2019 cycle and found that it generated three distinct bottoms as part of the reversal process.
According to the analyst, the 2021-2023 cycle also showed a similar structure, as active addresses reached three separate bottoms.
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Therefore, the market could see an incremental price rise in 2023, following the triple bottom structure of the last major cycle, oinonen_t believes. The analyst also noted,
“If Bitcoin follows the triple bottom structure of the last major cycle, we are on track to see incremental price increases in 2023. Bitcoin’s current ‘fair price’ is $43,598, closely aligned with our last price forecast of $46,092. ”
Source: CryptoQuant
Also, another analyst Uminkyu studied the behavior of long-term and short-term holders of BTC in relation to the realized price of the coin.
According to Woominkyu, historical precedents reveal that long-term holders of BTC have consistently outperformed short-term holders during periods when the cryptocurrency’s price has successfully crossed the realized price.
This has often led to BTC price rallies. In the current market cycle, long-term holders are expected to gain control of the market and push prices up gradually, Woominkyu noted.
“The situation does not appear to have changed significantly from the past and it looks like the ‘long-term holders’ will gradually gain control of the market and push prices up again.”
Source: CryptoQuant
Good news for BTC holders
Despite the momentary dip in BTC price on March 3rd and its failure to regain the $25,000 mark over the past month, on-chain data revealed that its investors continue to hold profit.
According to data from Sentiment, BTC’s Market Value to Realized Value (MVRV) ratio remains in positive territory. In general, a positive MVRV ratio for an asset implies that if all holders sold their holdings at the asset’s current price, they would generate twice as much profit on average.
Read it Bitcoin [BTC] Price forecast 2023-24
Additionally, a look at the royal coin’s exchange activity showed an increase in its off-exchange supply and a corresponding decrease in its on-exchange supply.
This is generally seen as a bullish signal as it means more investors are interested in holding rather than selling. This can help increase the value of an asset.
Source: Santiment
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