Bitcoin Price Analysis: On-Chain Analytics Suggest $100,000 Is Attainable

Favorable Factors Driving Bitcoin Price Towards New Highs

The recent surge in Bitcoin’s price has been relentless, with consecutive all-time highs achieved in quick succession. The momentum behind this rally, initially attributed to the outcome of the US elections, now seems to be self-sustaining and independent of external factors.

On-Chain Data Points Towards Further Upside

According to a recent report by CryptoQuant, a leading on-chain analytics firm, Bitcoin is far from being overvalued despite its recent price surge. In fact, the data suggests that the cryptocurrency could target the significant milestone of $100,000 in the near future.

The analysis is based on metrics like the MVRV ratio, which indicates the relationship between market value and realized value of Bitcoin. Currently, the MVRV ratio suggests that Bitcoin’s price is not in an overheated state, leaving room for further upward movement.

Evidence Supporting the $100,000 Price Target

CryptoQuant also points to the On-chain Realized max band, which indicates a potential price target of $100,000 for Bitcoin. This level was last reached in March 2024 when Bitcoin breached the $70,000 mark for the first time.

Additionally, there has been a resurgence in investor demand in the US post-election, as indicated by the positive Coinbase Premium. Moreover, the influx of stablecoins into exchanges, totaling over $3.2 billion since the election, suggests increasing market liquidity and a strong possibility of sustained price growth.

Cautious Optimism Prevails

Despite the bullish outlook, CryptoQuant warns of potential selling pressure in the near term. While some miners have started selling their holdings for profit, the overall selling activity remains low but could escalate quickly.

At present, Bitcoin is trading around $91,270, showing a 4% increase in the last 24 hours and a 19% surge over the past week, reflecting the ongoing bullish sentiment in the market.