Bitcoin’s Price Ceiling: A $135,000 Limit According to This On-Chain Model

A fascinating on-chain analysis suggests Bitcoin’s price may have a hard ceiling, at least for now. CryptoQuant’s CEO, Ki Young Ju, recently unveiled a model based on Bitcoin’s Realized Cap, pointing to a potential maximum price of around $135,000.

The Realized Cap represents the total amount invested in Bitcoin, calculated by summing the price at which each coin last changed hands. Dividing this by the circulating supply yields the Realized Price. Young Ju’s model uses multipliers of this Realized Price – 3.9x for the ceiling and 0.75x for the floor.

Historically, Bitcoin’s price has consistently peaked near the 3.9x multiplier and bottomed near the 0.75x multiplier. Currently, the 3.9x multiplier suggests a ceiling around $135,741, while the floor sits at approximately $26,104. With Bitcoin trading significantly below the projected ceiling, this model suggests potential for further growth.

Important Note: This model is based on historical patterns and doesn’t guarantee future price movements. Significant capital inflows could push the ceiling higher. However, it provides a valuable perspective on potential price limitations based on current market fundamentals.

While Bitcoin’s recent rally has paused around $90,000, this model offers a compelling case for a potential price ceiling to keep an eye on. It highlights the importance of on-chain data in understanding Bitcoin’s price dynamics.

Source: CryptoQuant