CryptoQuant analysts forecast Bitcoin at $50,000 in early 2024

CryptoQuant analysts allowed for a breakout above the $50,000 level for Bitcoin in early 2024, according to The Block.

The forecast is based on an analysis of holder activity in digital gold. It also takes into account transaction-volume dynamics, market capitalization, and закон Меткалфа in the context of cryptocurrencies.

“Bitcoin could target the [range] $50,000–$53,000, based on an assessment of network activity,” the experts noted.

According to them, the market is approaching an overheated bull phase, which has historically been accompanied by pauses and corrections.

Analysts noted that the share of coins in profit exceeds 88%. This points to potential selling pressure and, consequently, likely near-term corrections.

According to experts, such high levels of unrealized gains have historically coincided with local tops.

Additionally, CryptoQuant spotted a revival of Bitcoin whales, “reminiscent of 2021 trends”.

Analysts also отметили a reduction in the overall supply of digital gold in circulation “amid expectations of major market events”:

“A reduction in selling by short- and long-term holders, combined with positive investor expectations, could create conditions for further upside in the price of the first cryptocurrency.”

Earlier, veteran of the industry and Blockstream CEO Adam Back predicted Bitcoin to reach $100,000 ahead of the halving scheduled for April 2024.