Bitcoin broke its all-time highs for the second day in a row, boosted by the recent US election results and the Federal Reserve cutting interest rates by 25 basis points. Donald Trump’s victory brought new optimism among investors, with many seeing his pro-business stance as a catalyst for Bitcoin’s continued rise.
The recent interest rate cut, aimed at stimulating the economy, has also encouraged more capital to flow into risk assets like Bitcoin, driving its momentum.
Data from CryptoQuant reveals that Bitcoin’s profitability index now stands at 221% – an impressive figure, although still significantly lower than previous cycle peaks. This suggests there is plenty of room for further upside, especially with bullish sentiment growing.
Investors and analysts They are monitoring this metric closely, and many expect Bitcoin to continue rising in the coming weeks. The next phase will be crucial as BTC approaches uncharted territory, and investor optimism points to the potential for sustainable gains in this cycle.
Bitcoin is entering a bullish phase
Bitcoin has entered a new bullish phase after a long 7-month accumulation period, marked by a breakout to all-time highs. This stage is confirmed by insightful data from CryptoQuant analyst Axel Adlerwhich highlighted the current level of the Bitcoin Profitability Index of 221%.
While this is a strong profitability level, it is still well below the previous cycle highs, which reached highs of 460% and 395%, and the most recent high of 272%. This suggests that despite Bitcoin’s profitability, there is still significant potential for further gains before the top of the cycle is reached.
Adler notes that, on average, Bitcoin holders see profitability 121% higher than their initial investment, a promising sign for those anticipating sustainable growth. Historically, phases like this in the Bitcoin market cycle tend to be aggressive but relatively short-lived, often lasting only a few months before reaching exhaustion.
Given this historical pattern, Adler believes we may only be entering the early stages of this uptrend, leaving plenty of room for prices to rise.
This current environment, supported by fundamental and on-chain metrics, paints an optimistic picture of Bitcoin’s potential. As BTC continues to attract investor interest, many will be watching closely to see if it can replicate the momentum of previous sessions and head towards new highs before this bull phase peaks.
BTC tests price discovery levels
Bitcoin is trading at $76,200 after surpassing its all-time highs, confirming the strong uptrend. The bulls are firmly in control as the price consistently remains above $73,800, the previous all-time high.
This price level has proven important, providing strong support during the recent rally, indicating strong buying interest. BTC is now just 1% away from $77,000, a key level that many investors consider an important supply area.
The $77,000 level is important because analysts point out that it could act as a point of resistance, with many investors anticipating strong selling pressure around this price. Failure to break and hold above $77,000 could lead to a consolidation or pullback phase, as BTC will likely test low demand areas to gather fuel for the next move higher.
However, if the bulls push the price above this level and hold, the bullish momentum could continue, potentially reaching new highs in the coming days or weeks. The market remains optimistic, but the next few days will be crucial in determining whether Bitcoin is able to maintain its upward trend or face a period of consolidation.
Featured image by Dall-E, chart from TradingView
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