The cryptocurrency analysis firm CryptoQuant has just released a new analysis on the potential price volatility of Bitcoin over the next six months.
The report, compiled based on on-chain data, states that the current momentum is in the "initial bull phase". According to CryptoQuant, this situation could be a precursor to a new bull run for Bitcoin.
The analysis highlights three different scenarios for Bitcoin:
Optimistic scenario (Bull market)
According to the analysis firm, if the on-chain rate breaks and maintains above 1.0, on-chain metrics like NUPL and MVRV will signal new bullish momentum, in which case, Bitcoin could reach levels between $150,000 and $175,000, a move similar to the cycles of 2017 and 2021.
Base scenario (Consolidation period)
If this rate remains in the range of 0.8 to 1.0, the market is expected to enter a broad consolidation process in the range of $90,000 to $110,000. In this scenario, investors will maintain their current positions but be cautious with new purchases.
Related news: Tether (USDT) announces much-anticipated first quarter verification report - Here are its assets
Pessimistic scenario (Corrective action)
A drop to 0.75 could lead short-term investors to take profits, which may push the price down to a range between $70,000 and $85,000. However, CryptoQuant believes that this scenario is less likely to occur, noting that a correction has happened recently.
