On-Chain Analysis Empowers Investors to Predict Bitcoin Price Movements

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The analysis of on-chain data assists individuals in anticipating price movements and preparing for potential market fluctuations. Current indicators help cryptocurrency traders understand possible price actions.

Bitcoin On-Chain Analysis

The Terminal Price metric, assessed alongside Coin Days Destroyed (CDD) while considering Bitcoin supply, has proven to be a reliable tool for predicting past cycle peaks. Currently, the terminal price has surpassed $185,000, with expectations of reaching the $200,000 level as the cycle progresses.

The Puell Multiple compares daily miner revenues with the 365-day moving average. Following a decline in miner revenues post-halving, this metric indicates miners transitioning to profitability. A Puell Multiple above 1 signals advanced stages of a bull market.

The MVRV Z-Score compares market value to realized value while accounting for volatility. Currently, the score hovers around 3.00, indicating potential for growth in the market. The Active Address Sentiment compares price changes with shifts in network addresses, revealing a slight cooldown after Bitcoin’s rapid increase.

The Rally Continues

The Value Days Destroyed (VDD) metric weighs the movements of large, long-term holders to forecast market peaks. Present VDD levels suggest a slight overheating in the market; however, historical cycles indicate these levels can persist for several more months.

Evaluating these indicators together suggests that Bitcoin is approaching one of the most exciting periods of its bull market, with significant upside potential expected by the end of 2025. Major resistance levels are anticipated to form between $150,000 and $200,000.

By tracking these on-chain metrics, individuals can better analyze Bitcoin’s future movements and adjust their strategies accordingly. These dynamics in the market support Bitcoin’s long-term growth potential.

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