Bitcoin
Examining Bitcoin’s $100K Price Predictions – Do They Still Hold Up?
- The Puell Multiple approached a historic accumulation point
- Bitcoin’s Delta Cap has risen, suggesting the price may not reach $100,000 this cycle
In what is a major development, for the first time since December 2022, Bitcoins [BTC] Puell Multiple fell to 0.56 on the charts.
Puell Multiple measures the relationship between daily coin issuance and the annual average. With this metric, market participants can identify potential funds and tops. When the reading is above 6, it means miners are earning more than the previous year’s average. In terms of price, this could be a sign that Bitcoin is close to the top.
Bitcoin to $87,593?
On the other hand, if the Puell Multiple is less than 0.5, it means that miners are earning less than they should. In other words, this implies that BTC may be near the bottom on the price charts.
Therefore, this metric position at press time, it indicated that the coin could soon reach a buy area. So it’s worth looking at what happened in 2022.
Source: CryptoQuant
According to the chart mentioned above, the price of Bitcoin was around $16,832 when the Puell Multiple was last read. In just four months, however, the price soon registered an increase of +39%. What this means is that there is likely a very strong correlation between this metric and the price of the cryptocurrency.
At the time of writing, Bitcoin is valued at $63,017. Now, although history does not repeat itself exactly, the trends tend to be similar. Therefore, if we follow previous cycles, we can predict that Bitcoin price could trade around $87,593 before the end of October.
Top isn’t here, but it might be close
While this may be possible, the currency may face correction along the way. AMBCrypto also analyzed the Delta Cap to assess how far Bitcoin is from the top of this cycle.
Delta Cap is the difference between the Realized Cap and the updated moving average of the Market Cap. With this metric, participants can identify key market bottoms and tops.
In 2021, when the Delta Cap reached $340.93 billion, the price of Bitcoin began to fall. At the time this article was written, the value of Delta Cap was US$355.86 billion.
As this number is higher than that seen in the previous bull market, it can be assumed that the top for BTC in this cycle is near. However, this may not be the case because Bitcoin’s latest all-time high has already surpassed its 2021 high.
Source: Glassnode
Therefore, the Delta Cap is expected to be higher. Although the price of Bitcoin may rise to $85,000 or $90,000, the $100,000 predictions can be a challenge.
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If history is anything to go by, although BTC could get close to six figures, it could face rejection as it approaches the milestone.
Failure to break past potential resistance could trigger selling, and the crypto could end up trading below its very optimistic forecast.