Key Bitcoin Chart Screaming Bullish for BTC, According to InvestAnswers
A widely followed cryptoanalyst says a key Bitcoin (BTC) chart is pointing to major bullishness in the long term.
In a new video update, the host of InvestAnswers tells its 441,000 YouTube subscribers that the amount of users connected to each other through BTC is a signal that the king crypt will eventually trigger a massive run.
The analyst brings up Metcalfe’s law, which states that the value of a communication network is proportional to the square of the number of connected users in the system.
“Basically, I’ve proven that 83 to 84% of Bitcoin [and Ethereum’s] price is explained by the number of daily active users, the addresses, the network effect. But if you look at this chart here, this one chart makes it very clear what will happen to the price of Bitcoin in the long run. Not hopium, just math.”
The crypto strategist says that Bitcoin’s token supply is decreasing, which combined with increasing demand should cause the price of BTC to rise significantly.
“The amount of Bitcoin that is up for grabs, that amount of currency balances and future supply for mining is very thin and it is heading towards zero…
The number of changes on the chain goes up forever as long as the Bitcoin protocol survives, and we all know from economics 101 that when demand goes up and supply goes down, the price goes up. It is the most fundamental lesson in economics.”
The top crypto asset by market cap is trading at $22,992 at the time of writing, down 2.5% in the last 24 hours.
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