A widely followed crypto analyst says that one important Bitcoin (BTC) chart points toward major bullishness over the long term.
In a new video update, the host of InvestAnswers tells his 441,000 YouTube subscribers that the amount of users connected to each other through BTC is a signal that the king crypto will eventually spark a massive run.
The analyst brings up Metcalfe’s law, which states that the value of a communications network is proportional to the square of the number of connected users in its system.
“Basically, I have proven that 83 to 84% of Bitcoin [and Ethereum’s] price is explained by the number of daily active users, the addresses, the network effect. But if you look at this chart here, this one chart makes it very clear what will happen to the price of Bitcoin in the long run. Not hopium, just mathematics.”
The crypto strategist says that Bitcoin’s token supply is dwindling, which when coupled with rising demand, should cause the price of BTC to significantly rise.
“The amount of Bitcoin that is up for grabs, that amount on exchange balances and future supply for mining is really thin, and it’s heading to zero…
The number of on-chain changes is going up forever as long as the Bitcoin protocol survives and we all know that from economics 101, as demand increases and supply goes down, price goes up. It is the most basic lesson of economics.”
The top crypto asset by market cap is trading for $22,992 at time of writing, a 2.5% drop during the last 24 hours.
Original article: https://dailyhodl.com/2023/02/26/important-bitcoin-chart-screaming-bullish-for-btc-according-to-investanswers/
