The Bitcoin bulls are wide awake and are igniting an upward storm that doesn't seem to be ending any time soon. The asset's current price movement has prompted experts to collectively share their bullish outlook for the asset.
One such market analyst and contributor to Santiment makes a bold price prediction. The analyst believes that Bitcoin can reach the $150,000 price mark and explains the two paths Bitcoin can take to reach this milestone.
To strengthen this position, the analyst relied on on-chain data and revealed some notable insights. As he noted, net unrealized gains and losses are very close to the 0.54 level. When similar patterns were discovered in 2019, it marked the peak.
For people unfamiliar with the crypto terrain, net unrealized profit and loss (NUPL) is the difference between market capitalization and realized capitalization divided by market capitalization. NUPL indicates the total amount of profit/loss of all coins as a ratio. Although the top has not yet been reached, many traders are still in profit and the current value is 0.49.
Bitcoin’s journey to $150,000 could begin soon
The analyst highlighted the patterns of other key valuation tools and metrics and outlined the movement pattern of the Puell multiple. This assessment tool examines the fundamentals of mining profitability and how they influence market cycles.
“The Puell multiplier has reached 1.83 and there is still a way to go until the resistance of 2.05 in 2019. BTC open interest is increasing and is at similar levels to the first rally of 2021.
The only interesting thing is that the OI has been rising slowly and has not experienced a blow-off top like in 2021,” the analyst wrote.
The analyst describes two scenarios that could play out for Bitcoin. In Scenario A, Bitcoin could repeat 2019 market patterns, where supply bottoms out on a loss and the return rises back to 16%. As a result, the price of Bitcoin (BTC) is expected to decline to the realized price line ($23,000) in the next six months.
The Apex cryptocurrency will immediately follow the second scenario where the loss supply drops to 3% over the next six months. As for the price of the asset, Bitcoin will experience a major uptrend that will take it to $150,000.
“I think Scenario B is more likely since no new money has entered the market and we haven't had an OI blowoff top yet,” the analyst added. At the time of reporting, Bitcoin was trading for $50,718.
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