Bitcoin [BTC]: As hodlers rise, the king coin is headed for a massive rise
- Bitcoin holders increased at press time, raising questions about a price increase.
- Trends in chain data, such as fee-to-reward ratio and MVRV, also suggested an increase.
Although Bitcoin [BTC] has faced challenges of late, it was in a better position than its initial position in 2023. The growing number of holders raises the question of whether the royal coin was on the verge of a significant upturn at press time. Could there be a massive increase in store?
Read Bitcoins [BTC] Price prediction 2023-24
Bitcoin hodlers rise
Despite the volatile nature of Bitcoin’s price, the number of individuals holding the cryptocurrency has steadily increased. According to recent data from Santiment, more and more BTC investors are embracing a “hold” mentality and holding on to their holdings. At the time of writing, there were over 46 million holders.
💰 There is a rising rate of #Bitcoin #hodlers as traders seem to have become more and more content to keep the sacks untouched for the long term. We saw a similar trend from January 2021 to April 2021 when $BTC rose above $64k for the first time. pic.twitter.com/wYFBsx6Css
— Santiment (@santimentfeed) 9 April 2023
Interestingly, the last time the number of BTC holders increased, the price also increased. Coincidentally, the price spike occurred in April 2021, when BTC reached an all-time high of over $63,000. However, it was worth noting that during that period, the price had already crossed $50,000.
Other Bitcoin Uptrend Triggers
CryptoQuant’s April 8 analysis suggested that this surge in Bitcoin hodlers represented an accumulation phase. BTC’s market behavior can be divided into accumulation and distribution cycles. Historically, smart money (institutions) have favored accumulation cycles, while retail demand has been prominent during distribution cycles.
Monitoring data in the chain, such as fee-to-reward ratios, which rose before distribution cycles, can predict the shift from accumulation to distribution.
At the time of writing, the ratio of fees to rewards had increased, indicating a potential distribution phase for BTC and a possible price increase. Also, looking past the immediate price increase, there was a likelihood of even more significant growth in the coming months.
According to the CryptoQuant report, a remarkable increase is expected after the next Bitcoin halving event. Scheduled for April 29, 2024, this event 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 time frame analysis
Bitcoin’s 30-day market value to realized value ratio (MVRV) indicated that it was slightly overvalued at the current price. The MVRV stood at 3.78, indicating a potential for further price increases.
Source: Sentiment
How much is 1,10,100 BTC worth today?
Looking at the daily time frame chart of Bitcoin, it was clear that the royal coin had regained the $28,000 price region. It was trading at approximately $28,380, representing a loss of less than 1%.
Nevertheless, 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
