Popular crypto analyst Nicholas Merten of DataDash is looking at one key metric to explain what’s fueling Bitcoin’s bull run towards new all-time highs.
In a recent Bitcoin update, Merten tells his 473,000 subscribers that investors are holding Bitcoin (BTC) for longer and longer periods of time, which bodes well for his year-end targets of $100,00 and beyond.
“The reason market prices generally go up or generally go down is inflows and outflows, and if we can know there are more people eager to market sell or market buy, we can generally know the direction the price is going to go, and we’re able to spot the trend much, much simpler.
We have set up the foundation here for Bitcoin to start chartering up to all-time highs here in the near future. It really could be this month, if the momentum keeps going strong. But I really want to keep my estimates as conservative as possible here, and I’d like to assume that we’re going to see something probably within a month, a month and a half, two months, three months.”
Merten notes that Bitcoin has risen in price recently despite the lack of noteworthy news events about the world’s leading crypto.
Merten refers to the metric as the HODL waves, which stands for “hold on for dear life.” Because on-chain data allows anyone to verify how long a buyer has kept BTC in their possession, the analyst notes the trend wherein the aggregate BTC is being held for longer periods of time.
“They’re not moving within a 24-hour period, they’re not moving within a one-day to one-week period, a week-to-monthly period. They’re really starting to be held for longer periods of time.
We can see on-chain that general trend that there are more and more people who are taking that long-term approach. They’re not going to have any impact on the sell side, at least not for a long period of time.”
Based on that data, Merten remains confident that BTC can reach new highs this year.
“So we’re in October. We were hoping by the end of this year that we would see a rise back up to previous all-time highs of 65k, and then set the stage to continue climbing higher and make new all-time highs in price, and eventually charter towards six-digit territory at 100k, and with our most euphoric estimate being $200,000 in this cycle.
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