Charles Edwards, CEO of Capriole Investments, believes Bitcoin is entering a new era of momentum. Here’s what his on-chain data analysis reveals:
Key Metrics
- Energy Value: Bitcoin’s value based on energy input is currently $70,000, suggesting it’s fairly valued for the first time in two years.
- SLRV Ribbons: Ratio of short-term to long-term holders indicates strong potential for high returns.
- Dynamic Range NVT Signal: Bitcoin’s valuation has normalized after a period of overvaluation.
- Production Cost: Bitcoin has surpassed its production costs, making mining profitable again.
- Hash Ribbons: Shows increasing growth in hash rate, indicating miner confidence.
- Miner Sell Pressure:
High, highlighting miner profitability and ETF demand. - BTC Yardstick and Hodler Growth Rate: Suggest Bitcoin is in the early stages of a bull run.
- Supply Delta and Bitcoin Heater: Indicate conditions that typically precede significant market movements.
- BTC Macro Index: Signals strong market expansion.
Edwards’ Conclusion
Edwards believes these metrics point to a multi-month uptrend for Bitcoin, despite potential volatility. He declares that Bitcoin’s “deep value era” is over and welcomes the “Bitcoin Momentum era.”
At the time of writing, Bitcoin was trading at $66,262.
