Bitcoin Price Could Soon Break $100,000, Blockchain Firm Explains How
Bitcoin prices have continued their red-hot run over the past week, hitting consecutive all-time highs in less than five days. While Donald Trump’s success in the US election may have triggered the recent rally, the growth of major cryptocurrencies, as well as the crypto market as a whole, appears to have developed a life of its own.
Interestingly, the market has been wondering where the next market top will be, and some experts and commentators believe that BTC price The rally is over. However, a well-known on-chain analysis company has come forward to say that there is still room for Bitcoin prices to rise.
Four Reasons Bitcoin Price Could Hit $100,000: CryptoQuant
CryptoQuant in its latest weekly report disclose Bitcoin is the world’s largest cryptocurrency by market capitalization, and despite its recent momentum, it is not yet overvalued. According to the blockchain platform, the market leader may soon reach the coveted price level of $100,000.
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The rationale behind this forecast is based on valuable metrics such as the MVRV (Market Value to Realized Value) ratio. As the name suggests, this metric measures the ratio between a cryptocurrency’s market value and its realized value. Therefore, MVRV helps evaluate Bitcoin market tops and bottoms.
Crypto quantization pointed out that Bitcoin is not overvalued at current price levels as the MVRV indicator remains outside the overvalued zone. This ultimately means that the bullish price action is not overheated and Bitcoin price could still move higher.
What’s more, the maximum range achieved by traders on the chain points to $100,000 as the next target for Bitcoin price. According to CryptoQuant, the last time the top range reached current levels was in March 2024, when the major cryptocurrency broke above the $70,000 level for the first time.
Another on-chain observation supporting Bitcoin’s continued price rise is demand growth. CryptoQuant emphasized that investor demand in the United States has picked up since the presidential election, and Coinbase Premium has remained optimistic over the past few days.
Finally, liquidity in the crypto market has continued to increase over the past few weeks as stablecoins have entered exchanges. For context, more than $3.2 billion in USDT has flowed into exchanges since the U.S. election, indicating the potential for Bitcoin prices to continue rising.
Proceed with caution
However, CryptoQuant issued a warning in its report, saying some sales actions Likely to follow recent price increases. While some Bitcoin miners have begun selling off their assets to take profits, the blockchain firm also noted that the Bitcoin sell-off seen so far is still negligible, but could quickly escalate soon.
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As of this writing, Bitcoin price is around $91,270, up 4% in the past 24 hours. According to CoinGecko, the flagship cryptocurrency has gained more than 19% in the past week.
Featured image from iStock, chart from TradingView
