Key Takeaways:
- Bitcoin’s Mean Dollar Invested Age shows a significant drop, signalling increased activity and potential for a bull market.
- The average BTC wallet age has decreased by 27% since mid-October 2023, with a sharp 9% drop in the past three weeks.
- Log Regression Curves suggest potential Bitcoin price targets of $109K to $180K in this cycle.
Bitcoin’s Mean Dollar Invested Age metric, a key network activity indicator, has shown a dramatic shift since mid-October 2023. According to data from on-chain analytics firm Santiment, this metric – the mean age of Bitcoins in wallets – has fallen from 637 to 466 days. A 27% decrease suggests a significant spike in long-dormant coins back into circulation – a sign of increased market activity and utility.
Awakening Dormant Wallets Boosts Bitcoin Confidence
The most interesting case has been the recent decline in wallet age, which dropped 9% in the past three weeks. According to observers, this is evidence of what they call the “Trump Pump,” or, quite simply, a number of stagnant wallets have now awakened, increasing confidence in the current bull market.
Theoretically, a Mean Dollar Invested Age in decline indicates the presence of a bullish period, as more money in circulation often translates into greater liquidity and market momentum.
This was on an uptrend from May 2021 through to October 2023, which showed coin stagnation and ultimately contributed to highly volatile conditions within the market. Within the last 13 months, however, this flipped to the opposite.
The more this continues, the more the Bitcoin market capitalization will be set up for some increase. Given that such a metric still is well in the downtrend territory, this does warrant confidence that sustained rises in price might take place.
Log Regression Curves Offer Clarity
Further helping the bullish narrative, CryptoCon points to Bitcoin’s position within the red bands of the Log Regression Curves. While Bitcoin has not yet reached critical points in these bands, projections for potential price targets are striking: Layer 6 suggests a target of $108.5K, while Layer 7 extends to $151K.
That said, if the top of the cycle is to match the higher band, as in previous market cycles, then Bitcoin’s price could reach as high as $180K by late 2025. The fact that these regression curves correctly called the peaks in April and November 2021 lends some credence to these projections.
With the increase in network activity and favourable long-term price targets, Bitcoin is in a good position to continue higher. However, investors are not getting too confident, as the market’s unpredictability demands caution at all times, even when the indicators are bullish.
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