The call for Bitcoin to reach $100,000 has slowed over the past week, especially after the major cryptocurrency fell below $93,000 over the past seven-day period. Fortunately, Bitcoin has recovered somewhat from the recession, rising to $98,500 on Friday, November 29.
After the recent decline in Bitcoin prices, investors are left wondering if the top of the market cycle is near — or if there is still more room for growth. A prominent on-chain analytics firm revealed that the cryptocurrency market is still in a bullish phase.
Bitcoin is still in a bull market, but the blockchain company appears to be warning
In its latest report, market analytics platform CryptoQuant said Subtract Target for the highest Bitcoin price in the current session. According to the blockchain company, the market leader’s highest price falls in the six-figure valuation range.
The main rationale behind this prediction is based on the achieved price evaluation metric, which measures the price at which each coin was last transacted. From a historical perspective, this Bitcoin price range has often served as an indicator of the market top in past cycles.
According to CryptoQuant, the achieved price gauge currently points to $146,000 as a potential peak in this cycle. As shown in the chart below, the price range (red line), currently around $147,000, served as the market top in April and May 2021.
Source: CryptoQuant
Moreover, the holdings of new investors have not yet reached an extreme level, which was a signal at the past two market peaks. As of now, the value held by new Bitcoin investors represents just over 50% of the total money in Bitcoin; This number dwarves significantly compared to the 90% and 80% we saw in 2017 and 2021, respectively.
CryptoQuant warned:
Bitcoin price peaks usually occur when new investors enter the market to buy at very high prices, leaving them with a large percentage of the total value invested.
Furthermore, retail trading activity has not yet reached the levels often associated with Bitcoin price peaks. Historically, bull cycles have been seen to peak when retail BTC investors aggressively accumulate coins. However, this phenomenon is still absent under current market conditions.
It is worth noting that CryptoQuant expects a decline in the price of Bitcoin in the short term. According to the on-chain intelligence firm, MicroStrategy’s stock price has become overheated compared to the value of the company’s Bitcoin holdings.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is around $96,500, reflecting a roughly 3% increase over the past 24 hours. While this one-day rally helped pare some of Bitcoin’s losses last week, the flagship cryptocurrency is still down more than 2% over the time frame.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image created by DALL-E, chart from TradingView