The Bitcoin bull cycle is far from over with Halving
Strong double-digit corrections in bitcoin price are usual as data shows BTC remains in a strong bull cycle.
Over the past 48 hours, the price of bitcoin
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$65225
fell 13% from its new all-time high of $73,835 to briefly trade near $60,000. The correction was caused by overheated market conditions in what analysts have dubbed a “pre-halving pullback” ahead of the bitcoin halving which will take place in about 30 days.
However, a report from CryptoQuant shows that bitcoin's bull cycle is not over, given the relatively low level of investment flows from new investors and price valuation metrics that remain below levels seen during previous market highs.
The on-chain data analytics firm's weekly cryptocurrency report reveals that 48% of bitcoin investments come from short-term holders. According to CryptoQuant analysts, the “bull cycle typically ends with 84% to 92% of investments” coming from these new investors
••“The bitcoin bull cycle is still far from over, as shown by the relatively low level of new investment flows.”••
The chart above also reveals that this metric has “reached levels similar to mid-2019 (52%), when bitcoin also saw a significant correction,” something short-term traders should be wary of.
The CryptoQuant report also revealed that valuation metrics are still below levels consistent with previous market highs.
“The CryptoQuant P&L Index is still outside of a market top zone (red zone) and above the index's one-year moving average.
