Bitcoin’s next rally may be imminent, on-chain analyst points out
On-chain data shows that an imminent Bitcoin rally could drive its price up to $32,000, says Glassnode lead-analyst James Check.
After a long period of unusually low volatility, Bitcoin’s next major price move is likely imminent and could drive BTC to $32,000, according to James Check, the lead on-chain analyst at Glassnode. That price level is where Bitcoin’s “true cost basis is sitting,” Check explained in an exclusive interview with Cointelegraph.
To calculate Bitcoin’s average cost basis – the average price at which BTC was bought – Check and his team removed the coins that are lost forever from the calculation and focused on active Bitcoin investors.
“It’s where the mean reversion level would be, so a rally to that level, to be honest, wouldn’t surprise me,” he said.
Despite this bullish scenario, Check also points out there is likely a large number of investors who are tired of the bear market and are waiting for Bitcoin to reach that level before selling, thus putting pressure on the price.
“That’s an area where you start getting more resistance,” he pointed out.
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