- Bitcoin holders were increasing at press time, raising questions about a price uptick.
- Trends in on-chain data, such as fees-to-reward ratio and MVRV, suggested a surge as well.
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 coin was on the cusp of a significant uptick at press time. Could a massive surge be in the offing?
Read Bitcoin’s [BTC] Price Prediction 2023-24
Bitcoin hodlers rise
Despite the volatile nature of Bitcoin’s price, the number of individuals holding onto the cryptocurrency has been steadily rising. According to recent data from Santiment, more and more BTC investors are embracing a “hodl” mentality and retaining their holdings. As of this writing, there were over 46 million holders.
💰 There is a rising rate of #Bitcoin #hodlers as traders seem to have become increasingly content in keeping their bags unmoved for the long-term. We saw a similar trend from January, 2021 through April, 2021 when $BTC rose above $64k for the first time. https://t.co/xrwNhcqVLo pic.twitter.com/wYFBsx6Css
— Santiment (@santimentfeed) April 9, 2023
Interestingly, the last time the number of BTC holders surged, its price also swelled. Coincidentally, the price spike happened in April 2021, when BTC reached a record high of over $63,000. It was worth noting, however, that during that period, the price had already surpassed $50,000.
Other Bitcoin uptrend triggers
CryptoQuant’s analysis on 8 April suggested that this uptick in Bitcoin hodlers represented an accumulation phase. BTC’s market behavior can be divided into accumulation and distribution cycles. Historically, smart money (institutions) has favored accumulation cycles, while retail demand has been prominent during distribution cycles.
Monitoring on-chain data, such as fees-to-reward ratios, which rose before distribution cycles, could forecast the shift from accumulation to distribution.
As of this writing, the fees-to-reward ratio was spiking, indicating a potential distribution phase for BTC and a possible price surge. Also, by looking beyond the immediate price increase, there was a likelihood of even more significant growth in the coming months.
According to the CryptoQuant report, a notable surge is expected after the next Bitcoin halving event. This event is scheduled for 29 April, 2024, and will reduce the cryptocurrency’s block reward from 6.25 to 3.125, increasing its scarcity. The report suggested that after the halving, BTC’s price could reach $100,000.
30-day MVRV and daily timeframe analysis
Bitcoin’s 30-day Market Value to Realized Value ratio (MVRV) indicated that it was slightly overvalued at its current price. The MVRV stood at 3.78, suggesting a potential for further price appreciation.
Source: Santiment
How much are 1,10,100 BTCs worth today?
Looking at the daily timeframe chart for Bitcoin, it was apparent that the king coin had successfully reclaimed the $28,000 price region. It was trading at approximately $28,380, representing a loss of less than 1%.
Nonetheless, BTC remained in a strong bullish trend, as demonstrated by the Relative Strength Index (RSI), which was above 60 at the time of writing.
Source: TradingView