The highly anticipated Bitcoin halving took place on April 20th. Following this momentous event, analysts and experts have differing opinions on the direction of Bitcoin. Renowned analyst Tom Lee of Fundstrat remains bullish on Bitcoin. Meanwhile, on-chain data shows a cooling in the market despite the profitable BTC supply. In this context, historical MVRV Ratio trends point to promising buying opportunities.

Tom Lee says the future is bright for Bitcoin!

Cryptocoin.comAs you’ve been following, after the halving, Bitcoin is struggling to move forward, even though it’s holding its ground. However, some analysts are hopeful about the future. Hedge fund veteran Tom Lee stands out as one of these analysts. The analyst remains bullish on Bitcoin (BTC) following the halving. Lee draws attention to the Runes protocol, which helps generate a large amount of fees for Blockchain. In this context, Lee makes the following statement:

This is reminiscent of Bitcoin’s stablecoin. Because it’s pre-programmed to cut the block reward every 210,000 blocks. We know that means you’ve reduced the supply, but demand is strong and Bitcoin network utilization has been really strong because of things like the Runes protocol, so you’ve made the demand side stronger and the supply side smaller, so I think there’s upward pressure on the price

“Bitcoin could see $150,000 before the end of the year!”

The analyst says the Runes protocol will have an upward impact on the BTC price. Lee predicts that the BTC cycle will potentially reach $150,000 before the end of the year. Accordingly, the analyst says the following:

I think Bitcoin is definitely going to hit an all-time high this year, so we think something like $150,000 is possible this year. In the longer term, I don’t think there’s any harm in people setting $500,000 or much higher targets for Bitcoin.

Bitcoin’s MVRV rate falls below average!

Bitcoin’s recent surge to $66,000 has sparked speculation among investors about a BTC bottom. With potential gains of up to 67% indicated by the MVRV ratio, eyes are on key price levels. According to analyst Nebraskangooner, a move towards $75,000 could signal that a bottom is in sight. However, a drop below $58,000 would suggest otherwise.

In parallel, on-chain data shows that 88.8% of Bitcoin supply is profitable. It also reveals that this ratio has declined from the highs earlier this year. This trend mirrors the conditions observed on February 7, 2024, when Bitcoin traded at $44,000. It also points to a possible cooling in market sentiment, possibly leading to a consolidation phase.