Bitcoin's Plunge: Analyst Sees $74K, Cites Onchain Metrics

Bitcoin Price Crash: Analyst Predicts $74,000, Cites Onchain Metrics

Bitcoin's recent price crash has sparked concerns about the cryptocurrency's future, with one analyst predicting a further decline to $74,000. The analyst, who wished to remain anonymous, cited onchain metrics as the primary reason for the bearish outlook.

The analyst pointed to several key metrics, including the MVRV (Market Value to Realized Value) ratio, which indicates that Bitcoin is currently overvalued. The MVRV ratio is calculated by dividing the market capitalization of Bitcoin by its realized capitalization, which is the total value of all bitcoins that have moved on the network.

Another metric cited by the analyst is the Puell Multiple, which measures the ratio of the 30-day moving average of the daily transaction volume to the 30-day moving average of the daily transaction value. A high Puell Multiple indicates that transaction fees are relatively high compared to the value of transactions, which can be a sign of a market top.

The analyst also noted that the Bitcoin network has been experiencing a decline in hash rate, which is a measure of the computing power dedicated to the network. A decrease in hash rate can indicate that miners are finding it less profitable to mine Bitcoin, which could lead to a decrease in the price of the cryptocurrency.

Despite the bearish outlook, some investors remain optimistic about Bitcoin's long-term prospects. The analyst noted that institutions have been buying Bitcoin during the recent price drop, which could signal strong faith in the cryptocurrency's long-term potential.

However, the analyst cautioned that the market remains volatile, and investors should be prepared for further price fluctuations. The analyst also emphasized the importance of conducting thorough research and consulting with a professional before making any financial decisions.