Bitcoin (BTC) price rise on the horizon? This vital metric suggests so

TL;DR

After a correction below $94,500, BTC recovered to near $99,000, with certain indicators pointing to a further push north. Some analysts see BTC’s next targets ranging from $101,000 to $275,000, supported by bullish technical patterns and market sentiment. New BTC rally coming in?

The major cryptocurrency became the talk of the town earlier this month when its price finally conquered the psychological level of $100,000. On December 5th, it hit a new all-time high of over $103,500, causing great excitement throughout the crypto community. In the following days, BTC went through enhanced volatility, dancing around $100,000.

BTC Price, Source: CoinGecko

The beginning of this week, however, delivered a severe correction that took the valuation below $94,500. In the last few hours, however, BTC has regained some ground and is currently trading at around $98,700 (according to data from CoinGecko).

One major indicator suggests that the leading digital asset could be poised for a much more substantial resurgence in the near term. This is the supply of BTC stored in exchanges, which, according to CryptoQuant data, has dropped to the level last seen in the summer of 2018.

The development indicates a potential shift away from centralized platforms towards private wallets, which can be seen as a bullish factor as it reduces immediate selling pressure.

Also worth mentioning is the relationship between the value of the Bitcoin network and Metcalfe (NVM). The metric provides information about the relationship between the market capitalization of the asset and its adoption or use. Readings below 2 usually indicate that BTC may be undervalued, suggesting a possible upward price trend. The NVM is currently set at approximately 1.5.

How high can BTC fly?

Numerous analysts described the recent market pullback as a buying opportunity. Ali Martinez, for example, predicted that BTC will rise to $275,000, and advised investors to “buy the dip” without overleveraging. He based his forecast on a “cup and handle” pattern formed on the asset’s price chart.

Buy the dip and don’t overleverage! #Bitcoin $BTC it will reach $275,000, based on this cup and handle pattern! pic.twitter.com/cqf99cBtmB

— Ali (@ali_charts) December 10, 2024

Captain Faibik also chimed in, though he made a less optimistic prediction. User X noted BTC’s bounce, stating that the price could soon test the $101,000 resistance level.

“Once critical resistance is cleared, the next target is likely to be $110,000,” they surmised.

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