- BTC’s price could see another upward move later in the year.
- Many investors are currently holding the King Coin at a profit.
According to two analysts from CryptoQuant, history suggests that the value of Bitcoin [BTC] is ready to rise in 2023. The experts have shared their predictions based on historical trends and patterns observed in BTC price movements in the 2018-2019 market cycle.
Pseudonymous Analyst oinonen_t examined BTC’s active on-chain address data during the 2018-2019 cycle and found that it produced three discrete lows as part of the reversal process.
According to the analyst, the 2021-2023 cycle has also shown a similar structure as active addresses hit three individual lows.
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Therefore, the market could see incremental price growth throughout 2023 after the triple bottom structure of the last major cycle, opined oinonen_t. The analyst further noted,
“If bitcoin follows the triple bottom structure of the last major cycle, we will see incremental price increases throughout 2023.
Source: CryptoQuant
Also another analyst Woominkyu examined the behavior of long-term and short-term BTC holders in relation to the coin’s realized price.
According to Woominkyu, historical precedents have shown that long-term holders of BTC have consistently outnumbered short-term holders during periods when the price of the cryptocurrency has successfully exceeded the realized price.
This has often led to a rally in BTC price. In the current market cycle, long-term holders are expected to gain market control and gradually raise prices, Woominkyu noted.
“The situation does not appear to have changed much from the past and it appears that ‘long-term holders’ are gradually gaining control of the market and raising prices again.”
Source: CryptoQuant
Good news for BTC holders
Despite BTC’s temporary price drop on March 3 and failure to reclaim $25,000 over the past month, on-chain data showed its investors continue to hold at a profit.
According to data from Holy, BTC’s Market Value to Realized Value (MVRV) ratio remains positioned in positive territory. In general, a positive MVRV ratio for an asset means that if all holders sold their holdings at the asset’s current price, they would, on average, double the profit.
Read Bitcoin [BTC] Price prediction 2023-24
Additionally, a look at the king coin’s exchange activity showed an increase in off-exchange supply and a corresponding decrease in exchange supply.
This is typically seen as a bullish signal as it means more investors are more interested in holding than selling. This can help increase the value of an asset.
Source: Santiment
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