After a tumultuous month that kicked off with a massive price drop to below $50,000, sparked by uncertainties from Japan and rippling across global stock markets, Bitcoin has found itself in a state of flux. Despite the shaky start, Bitcoin ETFs have seen a rise in activity, and on Friday, a bullish signal came from the Fed. Jerome Powell, the Fed Chair, hinted at potential interest rate cuts beginning this September. With Bitcoin now sitting at $64,100, many of us are wondering where the price might go from here.
Fortunately, CryptoQuant offers some insights that could help us understand what’s ahead. According to their analysis, the current Bitcoin market cycle is tracking closely with historical trends, suggesting we might be entering a familiar phase.
The 0nchained Index
CryptoQuant has developed a powerful tool, the 0nchained Index, designed to help spot market tops and bottoms. It’s based on the behavior of investors who buy during bear markets and sell when prices near their peak. This tool isn’t based on guesswork; it’s backed by solid data and has successfully identified Bitcoin’s cycle tops and bottoms since 2011.
So, where are we now? According to the index represented in the above graph, we’re not at the peak yet. The top is expected when the index falls between 0 and 0.09. Right now, it’s sitting at 0.3, which suggests there might be room for the price to go up—possibly even doubling or tripling from where we are today. A pretty bullish index this one, don’t you think?
CryptoQuant’s index supports the predictions made by PlanB, the well-known Bitcoin analyst behind the Stock-to-Flow (S2F) model. His model suggests that Bitcoin could reach a price of up to $140,000 by the end of the year.
It looks like we might be in for an interesting ride ahead. Keep an eye on the market, and as always, make informed decisions by following us at HowToBuyBitcoin.org for the latest news and updates on Bitcoin.