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As the crypto market revels in Bitcoin’s (BTC) latest ascent to the $52,000 price level, an analyst has found two on-chain paths that would lead the digital asset to $150,000 within the next six months.
According to a CryptoQuant quick take by Onchain Edge, analysis of on-chain data showed two scenarios that would likely see BTC reach the $150,000 range in a massive bull run.
Metrics Show BTC Has More Room For Growth
Onchain Edge discovered that unrealized profits and losses are currently close to the 0.54 level, the same area that marked BTC’s price top in 2019. While the current value sits at 0.49, many holders are still in profit.
The Puell Multiple, a BTC valuation tool that examines Bitcoin miner profitability, has reached the 1.83 level. The metric provides data that can be used to detect when the market is in a buy or sell season. With a chart ranging from zero to ten, a value below 0.5 is considered a buy signal, while one above eight is deemed a sell signal. In extreme cases, the value goes above ten.
With the Puell Multiple value currently below the 2.0 level, the metric still has a bit to go before hitting the 2019 resistance of 2.05, according to Onchain Edge.
In addition, Bitcoin open interest has been on the rise and currently sits at a level seen during the 2021 rally that saw BTC hit its all-time high. While the open interest has been rising slowly, it has not experienced a blow-off top like in 2021.
The Scenarios for BTC at $150K
Onchain Edge’s findings laid the foundation for their predictions as the values of these metrics show BTC has more room for price increases.
The first scenario predicted by the market analyst is a repetition of market movements in 2019. At the time, the supply in loss bottomed at 16% and went back up. If the prediction manifests, BTC’s value will drop to the realized price line of $23,000 within the next six months, and afterward, the market will follow the second scenario.
In scenario B, the supply in loss will fall to 3% in the next six months. This means BTC will experience a major bull run that will push its price to $150,000.
Onchain Edge believes scenario B is more likely to manifest as new money has not entered the market and open interest has not experienced a blow-off top yet.
This article first appeared at CryptoPotato
