Apparently, through several on-chain market indicators analyzed by Glassnode, Bitcoin market price is poised to rally more than ten times in the future, if things develop like 2017 and data holds true.
Through a series of tweets, Glassnode CTO Rafael Shultze-Kraft highlighted through historical metrics what to expect in the Bitcoin market in the near future. Apparently, through several on-chain market indicators analyzed by Glassnode, Bitcoin market price is poised to rally more than ten times in the future, if things develop like 2017 and data holds true.
1/ Where are we in the #Bitcoin market cycle?
A look at some of the most important on-chain market indicators.
TLDR: Insanely bullish, most metrics are far from the top. If things develop anything like 2017, we could see more than 10x $BTC from here.
A THREAD ? pic.twitter.com/d1jU0h5fxA
— Rafael Schultze-Kraft (@n3ocortex) December 8, 2020
The data provided by CoinGecko shows Bitcoin was trading around $17,915.10 at the time of writing, having dropped approximately 2.7% in the past 24 hours. The asset is trading 10% below its all-time high achieved during the 2017 rally. A tenfold rally could therefore catapult the asset trading over $200k.However, with its market capitalization increasing by the rally, the volatility is poised to decrease and perhaps makes the rally less than that experienced during the prior rallies.A lot of institutional investors are betting big on the asset as indicated by the increasing number of funds reserved for it. Led by Grayscale that has assets under management over $12 billion, they are ready for the long-term gains in the crypto industry.Glassnode CTO On-Chain Analysis on BitcoinFirst, Rafael put Bitcoin historical market data on the MVRV-Z Score. The MVRV-Z Score is used to assess when an asset is overvalued or undervalued relative to its “fair value”, as underlined by the deviation between its market cap and realized cap. Under the MVRV Z-Score, it is expected that Bitcoin will rally and hit $240k. The indicator shows that Bitcoin current value is at only 34% of the 2017 top, whereby the price rallied 1150%.Next, Rafael put the asset under the Net Unrealized Profit/Loss scale. Whereby it shows the asset will rally and hit $286k. Notably, according to this indicator Bitcoin is 78% from the 2017 top, thus a 1,400% rally from the current level.The third on-chain indicator used to come up with his prediction was Reverse Risk that shows the asset will hit $240k. According to this indicator, Bitcoin current value is 11% from the 2017 top, thus 1180% rally.Under the ‘Market Cap to Thermo Cap Ratio’, Glassnode expects Bitcoin to rally and hit $138K. Notably, the indicator shows that the asset is trading 25% from the 2017 top, therefore calling for a 625% increase. Meanwhile, under the ‘Long-Term Holder SOPR’ on-chain indicator, Glassnode expects Bitcoin to rally and hit $328K. The indicator shows the asset is trading at only 13% from 2017 top, thus calling for a 1620% rally.The last on-chain market indicator used was the ‘Long-Term Holder MVRV’ that suggests Bitcoin will hit $274k. The indicator shows Bitcoin is currently trading at only 13% from the 2017 top, thus calling for a 1340% rally.next