Bitcoin Price Poised for 17% Gain to $117,000 as Onchain Indicators Signal Bullish Momentum

Bitcoin’s price has been trading within a well-defined range over the past six months, with onchain indicators suggesting a potential upward breakout toward $117,000 or higher. The short-term holder (STH) cost basis, which refers to the average purchase price of investors who have held Bitcoin for less than 155 days, has been a key metric in this analysis. Since January, Bitcoin’s price has fluctuated between $78,000 and $110,000, with the STH cost basis bands marking this range. The price touched the upper band of this metric in May at $112,000, hitting its current all-time high. If Bitcoin rises to retest this line, it is likely to move toward $117,000 in the short term. The upper boundary of the STH cost basis currently stands at $117,113, serving as the upper band of short-term price action.

The market value realized value (MVRV) metric, which measures whether an asset is overvalued, suggests that Bitcoin’s price still has room for further expansion before the unrealized profit value reaches an extreme level. This level is represented by the upper MVRV band around $123,000. This indicates that the current price of Bitcoin is not yet at an extreme overvaluation point, leaving room for potential price increases.

Analysts have also noted that Bitcoin is retesting its multimonth descending trendline, with a key breakout level at $109,000. A daily close above this level, followed by a retest as support, could confirm a breakout. Additionally, another analyst suggests that Bitcoin will break out once it closes above the upper boundary of a bull flag at $110,000 on the daily time frame, with a measured target of $130,000. This bullish flag pattern indicates a potential continuation of the upward trend, with the next target being $130,000.

Several traders are cautiously optimistic about a decisive break of the resistance at $109,000. This breakout could push Bitcoin to fresh all-time highs, potentially reaching $117,000 or higher. The onchain and technical data supporting this prediction suggest that the upward momentum for Bitcoin’s price is far from over. The STH cost basis serves as a psychological and technical support level, where a significant number of holders are likely to resist selling their Bitcoin. This resistance can create a floor for the price, preventing it from dropping below this level and potentially driving it higher as demand increases.

In conclusion, the onchain and technical data suggest that Bitcoin’s price has the potential to reach $117,000 in the near future. The STH cost basis serves as a key support level, while the next resistance level is seen at $140,000. As the market continues to evolve, investors will be closely monitoring these metrics to gauge the potential for further price appreciation. The current onchain data suggests that the market is still in a bullish phase, with many investors holding onto their Bitcoin in anticipation of further price increases. This dynamic is supported by the technical data, which shows strong buying pressure and a lack of significant selling activity.