As the bitcoin (btc) halving event concluded for the fourth time, the cryptocurrency market witnessed notable changes in key metrics.
These developments have led Charles Edwards, market expert and founder of Capriole Invest, to issue bold predictions that hint at a paradigm shift in the btc market.
bitcoin trading at 'deep discount'
One of the key metrics x.com/caprioleio/status/1782268940397236432″ target=”_blank” rel=”nofollow”>highlighted of Edwards is the staggering electrical cost associated with mining a single bitcoin. Edwards reveals that this cost has now reached a staggering $77,4000. This figure represents the raw electricity costs required to power the bitcoin network for each newly mined btc.
Another important metric that Edwards draws attention to is the price of bitcoin Miner, which skyrocketed to $244,000 on Saturday. This metric covers the block reward and fees miners receive for each bitcoin they successfully mine.
Notably, this increase in miner price coincided with the increase in transaction fees to $230, representing a four-fold increase compared to the previous all-time high of $68 set in 2021.
Taking the above metrics into account, Edwards suggests that btc is currently trading at a “huge discount.” This is because the price of btc is lower than the electrical costs of mining it.
This situation typically only lasts a few days every four years, suggesting that it will only take a short time for the price to reach and surpass this price level, which is slightly below btc's all-time high (ATH) of $73. .7000. reached March 14.
Edwards describes three possible outcomes following these events. Firstly, he anticipates a scenario where the price of bitcoin experiences a significant increase.
Secondly, there is a possibility that approximately 15% of miners will be forced to close due to unfavorable economy. Finally, Edwards suggests that average transaction fees are expected to remain substantially higher.
Based on the analysis of these metrics and potential scenarios, Edwards boldly predicts that bitcoin's days below the $100,000 mark are “numbered.” While it remains to be seen which of the three outcomes will prevail, Edwards expects a combination of all three factors to contribute to bitcoin's price appreciation.
Optimal purchasing opportunity?
bitcoin Has Demonstrated Significant Price consolidation above the $60,000 mark since Friday, following temporary dips below this threshold amid growing anticipation for the halving event.
crypto analyst Ali Martinez recently analyzed the current state of bitcoin price, suggesting that a potential bottom may have formed above these levels, increasing the likelihood of breaking above upper resistance levels shortly.
x.com/ali_charts/status/1782357703622324293″ target=”_blank” rel=”nofollow”>According According to analysis by Ali Martinez, bitcoin is struggling to establish the $66,000 price level as a crucial support zone. The data reveals that approximately 1.54 million addresses collectively purchased 747,000 btc at this level. If bitcoin gains this support, it may pave the way for further upward movement.
Martínez identifies bitcoin's next critical resistance levels, between $69,900 and $71,200. These levels represent important price barriers for btc bulls, and bitcoin may encounter selling pressure at these levels.
Furthermore, the analyst x.com/ali_charts/status/1782052167177654702″ target=”_blank” rel=”nofollow”>Point out That bitcoin's MVRV ratio, a metric that compares bitcoin's market value to its realized value, has shown a promising pattern, as seen in the chart below.
Martínez highlights that every time the MVRV index falls below its 90-day average since November 2022, it historically indicates an optimal buying opportunity for bitcoin. Curiously, such purchasing opportunities have resulted in average gains of approximately 67%.
According to Martínez, based on current market conditions and an analysis of the MVRV index, now may be an opportune time to consider purchasing bitcoin. Historical data and the possibility of significant price appreciation support this view.
btc is trading at $66,100, up 1.6% in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
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