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The Bitcoin network recorded 432,613 transactions on Sunday the 23rd.rd According to data released by crypto analytics firm Glassnode,
This is the third highest number of daily transactions in the history of the Bitcoin network and the highest since the peak of 452,462 in early May 2019.
A surge in network activity pushed the 7-day exponential moving average (EMA) of daily transactions above 350,000, the highest since December 2020, while bitcoin’s price hit a 10-month high. It happened despite the recent reduction from the value. Earlier this month he crossed the $31,000 level.
BTC price last changed in the $27,300s range and found solid intraday support near $27,000.
The increase in network activity in recent months shows a strong and improving demand for using the Bitcoin network as a payment layer, a positive sign for the world’s first and largest cryptocurrency by market capitalization.
Other indicators of network utilization, such as the number of active addresses, the number of new addresses, and the number of addresses holding non-zero BTC balances, have also trended upwards in recent months.
Positive On-Chain Trends Bore BTC Price
Measuring network utilization isn’t the only on-chain metric that bodes well for Bitcoin’s price.
The metrics tracked on Glassnode’s ‘Recovering from a Bitcoin Bear’ dashboard include recovering market profitability, the balance of USD-denominated Bitcoin assets, and the spot price trading compared to leading pricing models. It includes locations where it is being used, and in recent weeks has given off strong signals such as: A Bitcoin bear market is now behind us and Bitcoin is likely in the early stages of a new bull market.
As of Sunday, seven of the eight indicators were flashing green, but in recent weeks they’ve all been flashing together more frequently for the first time in over two years.
Bitcoin’s strong rebound in 2023 shows BTC up about 65% year-to-date, raising hopes that the Fed’s rate tightening cycle (2022’s key bear headwind) is coming to an end The cryptocurrency market is definitely behind. Late last year he was oversold following the FTX crash.
Safe-haven demand pushed BTC price even higher amid concerns that the traditional banking sector may be in trouble following a spate of US bank failures in early March. But regulatory uncertainty is eclipsed in a barrage of US SEC enforcement actions.
However, as global crypto adoption continues to move in the right direction and the macro/on-chain landscape is changing in our favour, the medium- to long-term outlook for BTC remains strong.
How far can Bitcoin go in this bull market?
Assuming the Bitcoin bull market returns, how high can Bitcoin go in this cycle?
A look at Bitcoin’s last two market cycles (both lasting about four years) can lead us to speculation.
From the 2015 bear market trough to the 2017 bull market crest, Bitcoin has posted a staggering rise of over 12,500%.
From the 2018 bear market trough to the 2021 bull market crest, Bitcoin still hit a high of 2,100%.
Assuming returns continue to decline with each bear market revival, could Bitcoin bounce back 1,000% (11x) from its 2022 lows?
This means that Bitcoin will reach the $165,000 territory in the next few years.
Other more widely adopted Bitcoin pricing models have more bullish potential stories.
According to the Bitcoin Stock-to-Flow pricing model, the Bitcoin market cycle is approximately 4 years and gives an estimated price level based on the number of BTC available in the market versus the amount mined each year.
The current fair price for Bitcoin is around $55,000 and could exceed $500,000 in the next post-halving market cycle. This is about 20 times more profit than the current level.
Finally, Blockchaincenter.net’s popular Bitcoin rainbow chart shows that at current levels Bitcoin is in the “accumulation” zone and has recently recovered from the “basically fire sale” zone in late 2022. . Gradually recovered from oversold. During the last bull market, Bitcoin was able to reach a ‘sell’. Seriously, sell! zone.
If this feat can be repeated in the next post-halving market cycle within a year to a year and a half after the next halving, this model could see Bitcoin price in the $200,000 to $300,000 range. suggesting sexuality. This is about 7 to 10 times the gain of the current level.