Their belief seems to be that Bitcoin is destined to appreciate unless these key indicators reverse themselves.
According to the Bloomberg crypto newsletter, a key on-chain indicator suggests that Bitcoin (BTC) is currently greatly undervalued.
Bitcoin active addresses, the 30-day average. Source: Glassnode.
Bloomberg’s crypto analyst Mike McGlone believes that the recent all-time highs in Bitcoin’s hashrate and more importantly, the 30-day average of active Bitcoin addresses, suggests a $15,000 price level for the asset:
“The Bitcoin hash rate continues to increase and recently reached new highs. Also advancing are addresses used. A top metric for adoption, the 30-day average of Bitcoin addresses is equivalent to the price closer to $15,000 when measured on an autoscale basis since 2017.”
McGlone has remained optimistic about Bitcoin throughout its ups and downs. He says that Bitcoin appears to be a leader in “paradigm shift toward digital money and stores of value” and although he admits that it can still fail, he believes this to be unlikely, concluding:
“Our graphic depicts primary on-chain metrics that would need to reverse for Bitcoin to not keep appreciating in price — the hash rate and active addresses.”
It is true that despite the recent downward momentum, Bitcoin’s on-chain fundamentals have seemingly remained strong, though there is no way of knowing when / if these indicators will lead to a price correction.