Bitcoin [BTC]: As hodlers rise, is the king coin heading for a massive increase

[ad_1]

Bitcoin holders were surging at press time, raising questions about a price hike. On-chain data trends, such as fee-to-reward ratio and MVRV, also suggested an increase.

Although Bitcoin [BTC] has faced challenges lately, it was in a better position than its starting position in 2023. The growing number of holders raises the question of whether the king’s coin was about to see a significant rise at the time. of the press. Could a massive push be in sight?

Read bitcoins [BTC] Price Prediction 2023-24

Bitcoin holders are increasing

Despite the volatile nature of the Bitcoin price, the number of individuals holding the cryptocurrency has steadily increased. According to recent data from Santiment, more and more BTC investors are adopting a hodl mentality and holding onto their holdings. As of this writing, there are over 46 million holders.

See more

There is a growing rate of #Bitcoin #hodlers as traders increasingly seem content with keeping their bags still for the long term. We saw a similar trend from January 2021 to April 2021, when $BTC first broke above $64,000. https://t.co/xrwNhcqVLo pic.twitter.com/wYFBsx6Css

Santiment (@santimentfeed) April 9, 2023

Interestingly, the last time the number of BTC holders increased, its price also inflated. Coincidentally, the price spike happened in April 2021, when BTC hit an all-time high of over $63,000. It should be noted, however, that during this period, the price had already exceeded $50,000.

Other Bitcoin Uptrend Triggers

CryptoQuants analysis from April 8 suggested that this rise in Bitcoin hodlers represented an accumulation phase. BTC market behavior can be divided into accumulation and distribution cycles. Historically, smart money (institutions) has favored cycles of accumulation, while retail demand has been predominant during cycles of distribution.

Monitoring on-chain data, such as fee-to-reward ratios, that increased before distribution cycles could predict the shift from accumulation to distribution.

At the time of this writing, the fee/reward ratio was on the rise, indicating a potential distribution phase for BTC and a possible price spike. Also, looking beyond the immediate price hike, there was a likelihood of even greater growth in the months ahead.

According to the CryptoQuant report, a noticeable increase is expected after the upcoming Bitcoin halving event. This event is scheduled for April 29, 2024 and will reduce the cryptocurrency block reward from 6.25 to 3.125, increasing its rarity. The report suggests that after the halving, the price of BTC could reach $100,000.

30-day MVRV and daily time frame analysis

Bitcoin’s 30-day Market to Realized Value (MVRV) ratio indicated that it was slightly overvalued at its current price. The MVRV stood at 3.78, suggesting further price appreciation potential.

Source: Santiment

How much are 1,10,100 BTC worth today?

Looking at the daily timeframe chart for Bitcoin, it was evident that the king coin had managed to reclaim the $28,000 price region. It was trading at around $28,380, representing a loss of less than 1%.

Nonetheless, BTC remained in a strong uptrend as demonstrated by the Relative Strength Index (RSI), which was above 60 at the time of writing.

Source: Trading View

[ad_2]