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Bitcoin continued its strong upward momentum, trading at levels never seen before. Today, the asset made a new all-time high of approximately $93,477. The ATH was achieved not long ago after an earlier drop today to $85,000.
However, at the time of writing, Bitcoin has seen a slight pullback, now down 0.5% from its peak to currently trade at $92,544, although it is still up 5.6% in the past day.
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Bitcoin finally at its peak?
Amid the rise in Bitcoin prices, market analysts offered their views on the possible path of Bitcoin. Crazzyblockk, CryptoQuant Analyst, Directed Questions regarding whether Bitcoin has reached its peak are evaluated by evaluating indicators of market profitability.
According to Crazzyblockk, there are two main metrics necessary to evaluate Bitcoin profitability: the number of Bitcoin addresses that are currently profitable and the overall profitability rate of these addresses. The analyst noted that almost all Bitcoin addresses are profitable, indicating increased market risk.
However, he also noted that current profit margins across different holding periods remain lower than those observed during previous bull markets, such as the 2019-2020 and 2021 bull trends, where profit margins reached 800-900%.
Despite concerns about potential short-term price corrections due to higher market risks, Crazzyblockk expressed confidence in Bitcoin’s long-term upward trajectory.
He stressed that strategies such as dollar cost averaging (DCA) and maintaining a long-term investment approach can benefit capital growth in this environment.
More room for gains?
In separate analysisCryptoQuant analyst Avocado Onchain highlighted the mining activity and its effects on Bitcoin price movement. Avocado noted that some Bitcoin miners have already started making profits, but this does not necessarily indicate that Bitcoin’s overall upward potential is weak.
He pointed to the Miner Position Index (MPI), which tracks Bitcoin outflows from miners’ wallets compared to the annual average. A rising MPI indicates increased selling activity by miners, which could indicate that the Bitcoin price may be approaching the peak of the cycle.
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So far, recent data has shown a slight increase in the MPI as Bitcoin reaches all-time highs. Avocado explained that this may represent early positioning for the next market cycle. By converting the MPI to a 30-day moving average, clearer signals regarding market cycles emerge.
The analyst identified patterns of profit-taking by miners near cycle tops, which are often followed by subsequent price increases and, ultimately, long-term downward trends. Avocado Onchain also highlighted additional data that supports the potential for further growth in Bitcoin prices.
Hash rates and mining difficulty, key indicators of mining activity and network security, have reached new highs, reflecting strong miner engagement and overall network health.
This data, combined with continued market interest and increased liquidity, suggests that Bitcoin’s price could see further upside this cycle, Avocado’s analysis suggests.
Featured image created with DALL-E, chart from TradingView
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