Analyst: Bitcoin's current price is undergoing a "healthy" consolidation phase, rather than the start of a bear market

BlockBeats News, March 25th, Bitcoin researcher Axel Adler Jr. stated that according to on-chain indicators, the current price cycle reflects a healthy consolidation phase rather than the beginning of a bear market. Adler Jr. pointed out that BTC has not yet entered an "overheated" zone in this cycle, which can be seen from BTC's investor price model.

This indicator has issued sell signals twice in 2021, and the model combines data such as realized cap, investor price, and Bitcoin supply.

Using the Cumulative Value-Days Destroyed (CVDD) indicator of Bitcoin, Adler believes that the market is still in a "growth phase."

The CVDD indicator is used to monitor the selling activity of long-term holders. Only one sell signal has been triggered so far in this bull market, back in March 2024. In a Substack article, Adler stated: "Considering the current market dynamics, once Bitcoin breaks a key peak level ($123,000), there may be profit-taking by veteran investors, exerting downward pressure on the price."

Based on the above analysis, Adler Jr. predicts that Bitcoin may climb to $130,000 within 90 days. (Cointelegraph)