Bitcoin bulls are wide awake, stirring up a bullish storm that does not appear to be coming to an end anytime soon. The current price performance of the asset has propelled experts to outline their bullish outlook on the asset collectively.
One such market analyst and contributor on Santiment is making a bold price prediction. Certain that Bitcoin can tap the $150,000 price mark, the analyst breaks down the two pathways Bitcoin can take to hit this milestone.
Relying on on-chain data to strengthen this position, the analyst revealed some notable findings. As he observed, Net unrealized profits and losses are very close to the 0.54 level. When similar patterns were spotted in 2019, it marked the top.
For people unfamiliar with crypto terrain, Net Unrealized Profit and Loss (NUPL) is the difference between market cap and realized cap divided by market cap. NUPL indicates the total amount of profit/loss in all the coins represented as a ratio. Although the top has not been realized, many traders are still in profit, and the current value is 0.49.
Bitcoin’s journey to $150,000 could begin anytime soon
Spotlighting the patterns of other important valuation tools and metrics, the analyst outlined the movement pattern of the Puell Multiple. This valuation tool examines the fundamentals of mining profitability and how they shape market cycles.
“Puell multiple reached 1.83 and there is still a bit to go until the 2019 resistance of 2.05. BTC Open interest is rising and is at similar levels as the first rally in 2021.
The one interesting thing is the OI has been rising slowly and hasn’t had a blow-off top like in 2021.” The analyst wrote.
The analyst details two scenarios that could play out for Bitcoin. In Scenario A, Bitcoin could repeat 2019 market patterns where supply in loss bottoms at 16% returns back up. As a result, the price of Bitcoin (BTC) is expected to drop to the realized price line ($23,000) in the next six months.
The apex cryptocurrency will immediately follow the second scenario, in which the supply in loss drops to 3% over the next six months. For the asset’s price, Bitcoin will experience a major bull run that will push it up to $150,000.
“I think Scenario B is more likely since new money hasn’t entered the market, and we haven’t had an OI blowoff top yet.” The analyst added. At report time, Bitcoin was trading for $50,718.