Bitcoin’s potential to reach $100,000 has long been a topic of discussion among crypto experts. While these predictions may have seemed far-fetched in the past, recent on-chain data suggests that this milestone is becoming increasingly plausible.
One of the key indicators pointing towards a $100,000 Bitcoin is the declining sell pressure from long-term holders. Metrics such as “Supply Last Active 1y+” and “Supply Last Active 2y+” reveal that a significant portion of the Bitcoin supply has remained untouched for extended periods of time. This indicates that long-term holders are holding onto their Bitcoin instead of selling, indicating their belief in higher future prices. This reduced selling pressure contributes to upward price momentum.
Despite a slowdown in the rate of new capital flowing into Bitcoin, positive capital inflows continue to support its price. Even though the daily inflow has decreased from its peak, it still exceeds the inflows seen during the 2021 bull cycle. This, combined with the reduced sell pressure, sets the stage for price appreciation.
Bitcoin’s volatility has also reached multi-year lows, as evidenced by the percentage price range over a 60-day period. Historical data shows that prolonged periods of low volatility often precede significant price movements. With the current spell of low volatility, Bitcoin may be primed for its next major bull run towards $100,000 and beyond.
Another factor favoring Bitcoin’s ascent to $100,000 is the strong buying support near current price levels. Glassnode’s URPD metric indicates that a substantial portion of Bitcoin’s circulating supply was acquired at cost bases close to the current spot price. In contrast, there is minimal resistance from holders with higher cost bases, suggesting a favorable supply-demand dynamic for higher price levels.
Even short-term speculative holders are well-positioned for further upside. Despite a significant number of BTC falling into an unrealized loss during the recent market correction, this figure has decreased dramatically as the market rallied back above $70,000. This indicates that a small portion of short-term holders are at an unrealized gain, reducing the risk of a major sell-off.
With these various indicators aligning, the path to $100,000 for Bitcoin remains clear. The combination of long-term holders hodling, reduced sell pressure, low volatility, and strong buying support all point to continued upward momentum. Achieving the $100,000 milestone and potentially surpassing it is now within reach for Bitcoin.
