Bitcoin Price Breaches $54K as Key On-Chain Metrics Predict Price Target of $100k

Bitcoin breached $54,000 today to mark a new all-time high of $54,770 and still going up as key on-chain metrics look highly bullish suggesting another bullish run. The funding rates are reportedly quite low on exchanges which is a key on-chain metrics suggesting traders are long on Bitcoin. On most of the previous occasions, funding rates skyrocketed with surging prices indicating a market pull.

The top cryptocurrency in its current run also attained an MVRV-Z  value of 7 for the first time since 2017 indicating that the bull run has now entered the advanced phase, and the last time when Bitcoin reached a value of 7, its price skyrocketed 2X in 2017. If Bitcoin price mimics the 2017 price rally, the current price target for the top cryptocurrency is just over $100,000.

Apart from the key on-chain metrics, institutional purchases have continued as Grayscale added another $263 million worth of Bitcoin to their treasury this week itself.

On-Chain Metrics Bullish, But Negative Coinbase Premium Suggest Retail Buyers Carrying the Rally

The key on-chain metrics are flashing green and thus many believe Bitcoin could easily surpass $55,000 by the end of the week. However, Coinbase Premium that has emerged as a key metric to measure market sentiment is currently negative. This suggests that the recent rally is mostly carried by retail buyers outside the US.

Coinbase premium has emerged as a key metric this bull season and even during last week’s rally which saw Bitcoin top $52,000 before correcting to $48K levels, Coinbase premium was the only key metric signaling bearish when most of the other on-chain signals were bullish. The analyst did suggest that the negative Coinbase premium is not necessarily a short signal, however, derivative traders must keep an eye.

Bitcoin price started February on a strong note after spending most of January under $35k price levels. the rising price of Bitcoin without any major pullbacks have made many believe Bitcoin is on the verge of a supercycle and expects its price to reach 6-figure by the end of this year.