Bitcoin [BTC]: On paradigm shifts and the possibility of $100k
Historically, the aftermath of every Bitcoin [BTC] halving lays the grounds for the resurgence of a bull cycle. The last time such a thing occurred, the king coin rose up and hit an ATH of 69,000. However, BTC’s trend, displayed in the first few months of 2023, seems to have detached from the usual preceding halving performance.
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Well, according to oinonen_t, a CryptoQuant analyst, one reason for the unprecedented performance was the cryptocurrency’s divorce from correlating with NASDAQ.
But more importantly, the analyst pointed out the market behavior usually observed pre-halving was already in motion. This could make it easy for BTC to reach $100,000 post-halving.
Besides the decoupling from the traditional assets, oinonen_t noted that the market has been characterized by retail demand . He further mentioned that this was a similar situation that preceded the 2019 target of $46,093.
Source: CryptoQuant
An accumulation cycle denoted the level of buying or demand for an asset. Distribution, on the other hand, shows the level of supply or selling of an asset. Hence, the accumulation/distribution zone could be used to spot tops, bottoms, and trend reversals.
The analysis also pointed to the fees to reward ratio . This metric represents the percentage of fees acquired from the block reward. Prior to the BTC ATH, the fees to reward ratio hit 0.21 pre-halving.
At press time, it was heading toward 0.1. Therefore, oinonen_t expects the BTC value to replicate the 2019 target mentioned above before the end of 2023. This would then propel the scarcity triggered by the Bitcoin halving and 3.125 BTC reward towards the $100,000 projection.
Interestingly,
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