Bitcoin’s next rally may be imminent, on-chain analyst says
On-chain data shows that an imminent Bitcoin rally could drive its price up to $32,000, says Glassnode lead analyst James Check.
After a long period of unusually low volatility, Bitcoin’s (BTC) next major price move is likely imminent and could drive BTC to $32,000, according to James Check, lead on-chain analyst at Glassnode. That price level is where Bitcoin’s “true cost basis is sitting,” Check explained in an exclusive interview with Cointelegraph.
To calculate Bitcoin’s average cost basis — the average price at which BTC was bought — Check and his team removed coins that are lost forever from the calculation and focused on active Bitcoin investors.
“It’s where the mean reversion level would be, so a rally to that level, to be honest, wouldn’t surprise me,” he said.
Despite this bullish scenario, Check also pointed out that a large number of investors are likely tired of the bear market and waiting for Bitcoin to reach that level before selling, thus putting pressure on the price.
“That’s an area where you start getting more resistance,” he stated.
To find out more about the chances of an upcoming Bitcoin rally, check the full interview on our YouTube channel — and don’t forget to subscribe!
