Bitcoin: Historical precedents point to a price rally in 2023 with this condition

• BTC’s price may see further upward movement as the year progresses.
• Many investors are currently holding the royal coin at a profit.

According to two analysts from CryptoQuant, history suggests that the value of Bitcoin [BTC] is poised to rise in 2023. The experts have shared their predictions based on historical trends and patterns observed in BTC’s price movements in the 2018 – 2019 market cycle.

Pseudonymous analyst oinonen_t looked at BTC’s active on-chain address data during the 2018-2019 cycle and found that they generated three individual bottoms as part of the reversal process.

According to the analyst, the 2021-2023 cycle has also shown a similar structure as active addresses hit three individual lows.

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Therefore, the market may see incremental price growth through 2023, following the triple bottom structure in the last major cycle, oinonen_t believed. The analyst further noted,

“If bitcoin follows the triple bottom structure of the last major cycle, we are about to see incremental price increases in 2023. Bitcoin’s current ‘fair price’ is at $43,598, closely aligned with our last price estimate of $46,092.”

Source: CryptoQuant

Furthermore, another analyst Woominkyu studied the behavior of BTC long-term and short-term holders in relation to the coin’s realized price.

According to Woominkyu, historical precedents revealed that long-term BTC holders have consistently outweighed short-term holders during periods where the cryptocurrency’s price has crossed the realized price.

This has often led to an increase in BTC’s price. In the current market cycle, long-term owners are expected to gain market control and gradually increase prices, Woominkyu noted.

“The situation does not seem to have changed significantly from before and it seems that ‘long-term owners’ will gradually gain control of the market and increase prices again.

Source: CryptoQuant

Good news for BTC holders

Despite the temporary drop in BTC’s price on March 3 and its inability to regain the $25,000 mark in the past month, data from the chain revealed that investors continue to make money.

According to data from Sentiment, BTC’s Market Value to Realized Value (MVRV) remains positioned in positive territory. In general, a positive MVRV ratio for an asset means that if all holders sold their holdings at the current price of the asset, they would generate twice as much profit on average.

Read Bitcoin [BTC] Price prediction 2023-24

Furthermore, a look at the royal coin’s exchange activity showed an increase in supply outside exchanges and a corresponding decrease in supply on exchanges.

This is usually seen as a bullish signal as it means more investors are interested in holding rather than selling. This can help increase the value of an asset.

Source: Sentiment