Popular crypto analyst Nicholas Merten of DataDash examines a key metric to explain what is fueling Bitcoin’s bull run to new all-time highs.
In a recent Bitcoin update, Merten tells his 473,000 subscribers that investors are holding Bitcoin (BTC) for increasingly longer periods of time, which bodes well for his year-end goals of 100,000. $ and beyond.
“The reason that market prices usually go up or down are the entries and exits, and if we can know that there are more people wanting to sell or buy in the market, we can usually know in which direction the price is going to go, and we’re able to spot the trend much, much easier.
We have laid the groundwork here for Bitcoin to start chartering to historic highs here in the near future. It could really be this month, if the momentum continues to be strong. But I really want to keep my estimates as conservative as possible here, and I’d like to assume that we’re probably going to see something within a month, a month and a half, two months, three months.
Merten notes that the price of Bitcoin has recently risen despite the lack of significant events regarding the world’s leading crypto.
Merten refers to the metric as HODL waves, which means “to hold out for life.” Since the on-chain data allows anyone to check how long a buyer has held BTC in their possession, the analyst notes the tendency for aggregate BTC to be held for longer periods of time.
“They don’t move within 24 hours, they don’t move within a day to a week, a week to a month. They are really starting to be held for longer periods of time.
We can see on the channel this general trend that more and more people are taking this long-term approach. They won’t have any impact on the seller side, at least not for a long time. “
Based on this data, Merten remains convinced that BTC can reach new highs this year.
“So we are in October. We were hopeful that by the end of this year, we would see a rise to previous all-time highs of 65,000, then set the stage for continuing to climb higher and hit new price highs, and ultimately charter to six territories at figures at 100,000, and our most euphoric estimate being $ 200,000 in this cycle.
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