According to the Bloomberg Cryptocurrency Newsletter, a key on-chain indicator shows that the price of Bitcoin (BTC) is currently greatly underestimated.
Bloomberg cryptocurrency analyst Mike McGlone believes that Bitcoin’s hash rate has recently hit a record high, and more importantly, the 30-day average of active Bitcoin addresses indicates that the asset level should be $15,000:
“The Bitcoin hash rate continues to increase and has recently hit new highs. As the highest adoption indicator, the 30-day average of Bitcoin addresses since 2017 is equivalent to a price close to $15,000.”
McGlone has always been optimistic about the ups and downs of Bitcoin prices. He said that Bitcoin is like a leader in the “shift to the paradigm of digital currency and store of value”.
Although he admits that Bitcoin may still fail, he believes that the possibility is very small. He concluded:
“Our chart depicts the main on-chain indicators. Bitcoin needs to reverse these indicators (such as hash rate and active addresses) in order to stop prices from rising.”
It is true that despite the recent downtrend, Bitcoin’s on-chain fundamentals still seem to be strong, although it is impossible to know when or whether these indicators will cause a price correction.
