- Key on-chain metrics show Bitcoin rally is far from over, BTC could rally up to hundreds of thousands of dollars in coming years.
- Bitcoin recovered up to 40 percent in Jan and currently lingers around the $23k resistance zone.
A crypto technical analyst, “Game of Trades,” has highlighted six strong on-chain metrics to keep Bitcoin’s hopes alive. According to the analyst, they signal a “generational buying opportunity” for market players.
This update comes shortly after Bitcoin witnessed the largest liquidation of short positions in 24 hours since August 2021.
Accumulation trend score, Entry-adjusted dormancy flow, Reserve risk, Realized price, MVRV Z-score, and Puell multiple were all featured in the metrics analyst GoT broke.
Bitcoin’s accumulation trend score shows that large institutions and whales have been deeply accumulating Bitcoin since the FTX saga. The last time deep accumulations like this happened during the 2018 and 2020 bottoms.
Bitcoin: 6 on-chain metrics calling for a generational long-term buying opportunity
A thread 🧵
— Game of Trades (@GameofTrades_) January 23, 2023
The metrics also show that investors’ confidence level is at an all-time high. In his own words, “at levels never seen before in Bitcoin’s entire history.” This is captured in the reverse risk metric that assesses the confidence of long-term holders in relation to Bitcoin’s current price.
Analysts like Gaah also believe that the current Bitcoin setup shows a strong short and long-term buying opportunity. Bitcoin entered a ranging market on Jan 20 and has lingered on around a major support at $22,300 and a resistance zone at $23,400.
Ranging markets usually denote an indecisive market and traders are often cautious to wait for the price to break out. This is either through a major support zone or a resistance zone to decide where the market will head next.
Around $20k was a major resistance zone Bitcoin had to convert to support to show bullish signs. It crossed that on Jan 20 and converted the $20k range to its bottom. The next major point according to Analyst Gaah is the $24k zone. Should Bitcoin break out through the $23k zone and convert the $24k zone to another floor, a rally is inevitable.
Bitcoin’s price performance
Bitcoin suffered a terrible decline in 2022. The asset declined by a whopping 60 percent. As a result, Bitcoin lost billions in its global market capitalization since hitting new price levels in 2021.
Cryptocurrency has been showing signs of recovery amidst all the crashes and saga that saturated the crypto market in 2022. Around 37-40 percent is the recorded range Bitcoin has recovered in Jan 2023 alone, showing strong bullish signs.
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Crypto proponents like Tim Draper also hold very optimistic views on Bitcoin’s price performance in 2023. The billionaire and venture capitalist believe that Bitcoin will cross the $250,000 Mark before the end of 2023.
One of his reasons comes from a strong belief that more women will be involved in crypto transactions since 80 percent of women control retail spending and only 1 out 7 wallets are currently held by women.
