Cryptocurrency analysis firm CryptoQuant stated that Bitcoin has retraced from the $100,000 level after continuously hitting new highs.
But this is just a 'temporary setback'.
Next, it will break through.
Breaking this important barrier, even challenging higher price levels.
Cryptocurrency analysis firm CryptoQuant stated that Bitcoin has retraced from the $100,000 level after continuously hitting new highs, but this is just a 'temporary setback'. Next, it will break through this important barrier and even challenge higher price levels.
Various on-chain data indicators show that Bitcoin still has significant room for growth, and the bull market has a distance to go before reaching its peak. CryptoQuant's self-developed 'Profit and Loss Index (P&L Index)' indicates that Bitcoin is currently firmly in a bull market, but has not yet reached the excessively high valuation levels seen during the market peaks in 2021, 2017, and 2017. This index combines several on-chain valuation indicators to assess whether Bitcoin's price is 'overvalued' or 'undervalued'.
The company's bull-bear market cycle indicator began to rise only after a slight retreat into the energy market earlier this year, when Bitcoin dropped from a record high of $73,000 in March to $50,000. This indicator is still far below the overheating level seen in March. Meanwhile, retail investor participation remains sluggish, in contrast to the typical 'frenzied buying' phenomenon observed at previous cycle tops. According to CryptoQuant data, since October, retail investors sold 41,000 Bitcoins, possibly to take profits, while at the same time, large investors increased their holdings by 130,000 Bitcoins.
New investors are also not in a hurry to enter the market. These new investors (or addresses that started holding Bitcoin within the last six months) hold Bitcoin worth 50% of the total value invested in Bitcoin (realized cap), far lower than the 80% to 90% levels reached in 2017 and 2021. Analysts say: when the price peaks, new investors usually buy in at extremely high prices, resulting in a large portion of their holdings in Bitcoin relative to total investment. Previous bull market cycles ended when retail investors heavily bought in, but the situation is different now.
Despite Trump being elected as U.S. president, which drove Bitcoin close to $100,000, it subsequently dropped 9% from the latest record high, and is currently priced at about $96,631.
Although Bitcoin's market has retraced, CryptoQuant analysts say breaking through the $100,000 barrier is just a matter of time.
The previous bull market of Bitcoin peaked near the upper limit of the 'realized price indicator', which is four times the average price of the last transfer of all circulating Bitcoin. Data shows that the current price of Bitcoin realized profit is between $36,000 and $37,000, and it is rising rapidly, indicating that the current upper limit range is $147,000.
According to CryptoQuant, if historical patterns repeat, Bitcoin is expected to reach at least $147,000 before hitting the upper limit of this market cycle.
Yuan.
CryptoQuant is not the only company optimistic about Bitcoin's rise. Recently, Galaxy Research stated that Bitcoin price is expected to reach $100,000 in the short term and could go even higher due to continuous institutional adoption and the possibility of building Bitcoin national reserves.
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