Bitcoin ‘Terminal Price’ hints next BTC all-time high is at least $110K
Bitcoin (BTC) might next be a “sell” at least $110,000 as its brand-new bull cycle plays out, a timeless on-chain indicator suggests.Data from on-chain analytics platform Look Into Bitcoin reveals Bitcoins Terminal Price meaning a possible six-figure BTC rate top.BTC rate to six figures next cycle?As BTC cost action circles its highest levels in 18 months, forecasters are already considering how high it might go in the coming months and even years.After the next block subsidy halving in April 2024, targets include $130,000, with late 2025 a popular deadline for the next cycle top.Analyzing Terminal Price, Look Into Bitcoin creator Philip Swift explained its value as a “simple” approach of approximating long-lasting BTC cost peaks.Terminal Price is determined from Bitcoins so-called Transferred Price– a value obtained by dividing Coin Days Destroyed (CDD) by the existing supply.CDD is a popular metric which measures how numerous inactive days are reset each time an amount of BTC moves on-chain. It is beneficial as a gauge of hodler intent and activity.Bitcoin Terminal Price and Balanced Price chart. Source: Look Into BitcoinCreated by Checkmate, lead on-chain expert at information firm Glassnode, Terminal Price enters into play at the top of each BTC cost cycle.Not every all-time high reaches Terminal Price, however BTC/USD did hit the trendline during its 2017 all-time and preliminary peak in April 2021. The present all-time high of $69,000, seen in November that year, fell short.Swift hence suggested that selling “near” Terminal Price would be an appropriate policy. Its bear market counterpart, Balanced Price, likewise signals useful market bottoms.Buy near Balanced Price, sell near Terminal Price.Could it be that basic? #bitcoin cycles. pic.twitter.com/llHytNVuxr— Philip Swift (@PositiveCrypto) November 10, 2023
“The Pi Cycle Top indicator caught so lots of off-guard last cycle, including myself, by completely determining the top … again! Swift queried.Bitcoin Pi Cycle Top annotated chart. Source: Philip Swift/XThis article does not consist of investment recommendations or suggestions.
Related Content
Other Questions People Ask
What does Bitcoin ‘Terminal Price’ indicate about the next BTC all-time high?
Bitcoin ‘Terminal Price’ suggests that the next all-time high for BTC could be at least $110,000. This indicator, derived from on-chain analytics, provides a framework for estimating potential price peaks based on historical data. As Bitcoin enters a new bull cycle, understanding Terminal Price can help investors identify optimal selling points.
How is Bitcoin ‘Terminal Price’ calculated and what does it mean?
Bitcoin ‘Terminal Price’ is calculated using the Transferred Price, which divides Coin Days Destroyed (CDD) by the current supply of Bitcoin. This metric reflects the activity of long-term holders and their intent to sell. By analyzing these factors, investors can gauge potential price peaks and make informed decisions about when to sell their BTC holdings.
Why is the $110K target significant in relation to Bitcoin ‘Terminal Price’?
The $110,000 target is significant as it aligns with the predictions made by analysts based on Bitcoin ‘Terminal Price’ indicators. This price point marks a potential threshold for the next bull cycle, especially following the upcoming block subsidy halving in April 2024. Investors are closely monitoring this level as it could signal a strategic selling opportunity.
What role does Coin Days Destroyed (CDD) play in determining Bitcoin ‘Terminal Price’?
Coin Days Destroyed (CDD) plays a crucial role in determining Bitcoin ‘Terminal Price’ by measuring the number of inactive days reset each time BTC is moved on-chain. This metric helps assess the behavior of long-term holders and their market activity. By analyzing CDD, investors can better understand market trends and potential price movements related to Terminal Price.
How can investors use Bitcoin ‘Terminal Price’ to make trading decisions?
Investors can use Bitcoin ‘Terminal Price’ to inform their trading strategies by identifying potential selling points near this price level. As historical data suggests that BTC often peaks around Terminal Price, traders can plan their exits accordingly. Additionally, understanding this indicator alongside Balanced Price can help investors buy low and sell high effectively.