Analysis of on-chain data can help traders predict price movements and be prepared for possible market fluctuations. Current indicators help understand possible price movements for cryptocurrency investors.
Bitcoin On-Chain Analysis
Terminal Price metric, Bitcoin $98,538.2 It is considered alongside Coin Days Destroyed (CDD) considering supply and has been a reliable tool in predicting cycle tops in the past. Currently, the terminal price is above $185,000 and is expected to reach $200,000 as the cycle progresses.
The Puell Multiplier compares daily miner revenues with the 365-day moving average. Following the decrease in miners’ income after the halving, this metric shows the miners’ transition to profit. When the Puell Multiplier rises above 1, it indicates the advanced stages of the bull market.
The MVRV Z-Score compares market value to realized value and takes volatility into account. Currently the score is around 3.00, indicating growth potential in the market. Active Address Sensitivity compares the change in network addresses with the change in price. Latest data indicates that there is a slight cooling after Bitcoin’s rapid rise.
Spent Output Profit Ratio (SOPR) measures the profit from Bitcoin transactions. The recent increasing tendency to take profits may indicate that the cycle is approaching its final stages. However, the increased use of Bitcoin ETFs and derivatives may have disrupted historical thresholds of SOPR values.
The Rise Is Not Over
The Value Days Destroyed (VDD) metric is used to predict market tops by weighting the movements of large and long-term holders. While current VDD levels suggest the market is slightly overheating, past cycles have seen these levels persist for several more months.
Evaluating these indicators together shows that Bitcoin is approaching the most exciting period of the bull market and has a significant upward potential until the end of 2025. Major resistance levels are expected to form between $150,000 and $200,000.
By tracking these on-chain metrics, investors can better analyze Bitcoin’s future movements and determine their strategies accordingly. These dynamics in the market support Bitcoin’s long-term growth potential.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
