Bitcoin’s future price trajectory is coming under scrutiny as it continues its bullish cycle, with a classic on-chain indicator suggesting that it might be a good time to sell when the cryptocurrency reaches at least $110,000.
According to data from the on-chain analytics platform Look Into Bitcoin, the “Terminal Price” of Bitcoin is hinting at a potential six-figure peak.
This Terminal Price is seen as a straightforward method for estimating the long-term peak price of Bitcoin.
To calculate the Terminal Price, one looks at Bitcoin’s “Transferred Price,” which is determined by dividing “Coin Days Destroyed” (CDD) by the existing supply of Bitcoin.
CDD is a popular metric used to measure the number of dormant days reset each time a certain amount of BTC is moved on-chain. It provides insights into hodler intent and activity in the market.
The Terminal Price, created by Checkmate, the lead on-chain analyst at data firm Glassnode, becomes relevant at the peak of each Bitcoin price cycle.
While not every all-time high reaches the Terminal Price, Bitcoin did touch the trendline during its 2017 all-time high and again during its initial peak in April 2021.
The most recent all-time high of $69,000 in November of that year fell short of the Terminal Price.
Philip Swift, the creator of Look Into Bitcoin, suggests that selling “near” the Terminal Price could be a prudent strategy.
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Additionally, there’s a bear market counterpart known as the “Balanced Price,” which signals useful market bottoms.
As time passes, the Terminal Price tends to increase, suggesting that $110,000 might actually be a conservative target if the next all-time high occurs later in the upcoming cycle.
Swift also brings attention to the “Pi Cycle Top” indicator in his analysis. This indicator uses two moving averages for forecasting and has a track record of reliably predicting long-term price highs, albeit with just a few days’ notice.
It managed to accurately identify the top of the previous Bitcoin cycle, leaving many, including Swift himself, surprised. The question remains whether it will once again pinpoint the top of the current cycle.
With Bitcoin’s price action reaching new heights and these on-chain indicators in play, the cryptocurrency market is abuzz with predictions and strategies for the future.
The potential for Bitcoin to reach six figures in the next cycle is certainly on the radar of many forecasters and investors.
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