Bitcoin’s [BTC] price “might touch $42,000 this year,” well only if…

ambcrypto.com:

Currently trading at its September 2022 level, CryptoQuant analyst Oinonen_t has opined that Bitcoin [BTC] “has a significant chance to reach its fair price of $42K this year.”

According to Oinonen_t, an assessment of two on-chain indicators, namely BTC’s exchange  stablecoins ratio (ESR) and exchange reserves, confirmed the potential for a further price increase. 

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The analyst noted that BTC’s ESR has surpassed a technical inflection point and is diverging from the spot price, which is a positive sign.

Additionally, BTC’s exchange reserves have been in a long-term downtrend, reflecting entities holding their assets off-exchange, which the analyst referred to as a “healthy development” for the market. 

These factors, along with the approaching 2024 halving event, indicate that BTC is moving toward a new pre-halving accumulation cycle, Oinonen_t concluded.

Source: CryptoQuant

Also sharing a similar belief in a continued rally in BTC’s price, another CryptoQuant analyst operating under the pseudonym Yonsei_dent  assessed BTC’s Supply in Profit metric and found that the current market has passed the Bottom Discovery phase and entered the Transition phase, which often precedes a potential for a bull market.

He found further that BTC’s Adjusted Spent Output Profit Ratio (aSOPR) on a 400-day moving average has reached the previous cycle’s low, suggesting that further declines are unlikely.

“Compared to the time of entry into the 2019 bull market, it seems a bull transition is in the process of passing through the bottom. However, in the case of the 2015-2016 Bottom, Supply in Profit (%) went down after entering the Transition phase, and the Bottom period became