BTC Holds Strong Above $80K: Positive On-Chain Metrics Signal Further Gains

This stability is encouraging, especially as the cryptocurrency is showing signs of recovery and has recently marked its best weekly performance in two months. Bitcoin reached a high of $88,804, reflecting a 4.24% increase, and one analyst has even predicted that the cryptocurrency could soar to $130,000 within the next three months, highlighting growing optimism in the market.

As Bitcoin continues to regain bullish momentum, Axel Adler, a prominent Bitcoin researcher, noted that on-chain data is suggesting a healthy consolidation within the current bull market, rather than indicating the onset of a bear market.

According to Adler, indicators such as the CVDD (Cumulative Value Days Destroyed) and the Investor Price Model point to a stable price action, indicating that Bitcoin has not yet entered overheated territory. He emphasized that the current phase appears to be a consolidation period where Bitcoin is solidifying its gains rather than experiencing a correction or downturn.

The CVDD metric, in particular, suggests that Bitcoin is still in a “growth phase,” with continued upward potential. However, Adler also warned that if Bitcoin were to break through a significant resistance level, particularly in the $123,000 range, a price correction could be expected, as some investors may decide to take profits.

Despite the ongoing correction, Adler believes the long-term outlook remains positive. He pointed out that the broader macroeconomic environment, including the Federal Reserve’s more moderate stance on interest rates and potential clarity around Donald Trump’s tariffs, could serve as additional catalysts to propel Bitcoin to new heights. This macro recovery, combined with the strength of Bitcoin’s current cycle, could spark a fresh wave of bullish sentiment in the coming months.