Important points:
Bitcoin's average dollar investment age has shown a significant decline, indicating increased activity and the potential for a bull market. The average age of BTC wallets has decreased by 27% since mid-October 2023, with a significant 9% decrease over the past three weeks. The log regression curve suggests a potential Bitcoin price target for this cycle between $109,000 and $180,000.
Bitcoin’s average investment age indicator, a key network activity indicator, has shown dramatic changes since mid-October 2023. According to data from on-chain analytics firm Santiment, this metric (the average age of Bitcoins in a wallet) has been declining since 637. Until 466 days. The 27% decline suggests that coins that have been dormant for a long time are seeing a significant surge back into circulation, a sign of increased market activity and utility.
Awakening of dormant wallets boosts Bitcoin confidence
The most interesting case is the recent decline in the age of wallets, which has decreased by 9% over the past three weeks. Observers say this is evidence of the so-called “Trump pump,” which simply means that many stagnant wallets are waking up and gaining confidence in the current bull market.
In theory, a decline in the average dollar investment age indicates the presence of a bull period, since an increase in currency in circulation often leads to increased liquidity and market momentum.
This was an upward trend from May 2021 to October 2023, indicating stagnation for the coin and ultimately contributing to a highly volatile situation within the market. However, within the past 13 months, this situation has reversed.
The longer this continues, Bitcoin's market cap will be set for some increase. Given that such indicators are still in the area of a downtrend, this confirms the belief that a sustained rise in prices can occur.
Clear logarithmic regression curve
CryptoCon further supports the bullish narrative, pointing to Bitcoin's position within the red band of the log regression curve. Although Bitcoin has not yet reached the critical mass of these bands, the predictions of potential price targets are surprising. Layer 6 suggests a target of $108,500, and Layer 7 extends to $151,000.
That said, if the top of the cycle coincides with a higher band, as in previous market cycles, Bitcoin price could reach $180,000 by late 2025. The fact that these regression curves correctly call the April and November peaks for 2021 lends some credence to these predictions.
With increased network activity and strong long-term price targets, Bitcoin is well-positioned to continue rising. However, even if the indicators are bullish, investors are not very confident as market unpredictability always requires vigilance.
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