Bitcoin’s valuation metrics point to a sustained bull market, with analysts eyeing a potential target of $146,000 as retail activity remains subdued.

Bitcoin's (BTC) Metrics Suggest Bull Market Strength

Bitcoin’s (BTC) valuation metrics signal that the cryptocurrency’s bull market is far from over, despite recent price corrections. Analysts from CryptoQuant highlight that (BTC) is not showing the typical overvaluation patterns seen during previous market tops. The data suggests Bitcoin could rally toward a $146,000 price target in the current cycle.

Institutional Investors Dominate While Retail Activity Lags

Retail investors have reduced their Bitcoin holdings by 41,000 BTC since October, while larger players have added 130,000 BTC during the same period.

  • Retail Activity: Historically peaks during market tops, but current retail holdings are at just 50% of total invested, compared to 90% in 2017 and 80% in 2021.

  • Institutional Momentum: Exchange-traded funds (ETFs) drove Bitcoin (BTC) inflows to a record $3.1 billion in the week ending Nov. 22, when BTC nearly touched $100,000.

Changing Market Dynamics

The data indicates a shift in market drivers, with institutional investors now leading the accumulation phase, a marked difference from previous cycles dominated by retail enthusiasm.

Bitcoin Price and Market Indicators

Bull-Bear Cycle Indicator Remains Bullish

CryptoQuant’s bull-bear market cycle indicator has been in bullish territory since early November, but it has yet to reach the overheated levels seen in March 2024, when Bitcoin hit $70,000.

Realized Price Valuation Targets

From a realized price perspective, Bitcoin’s $146,000 price target aligns with historical cycle peaks.

  • The P&L Index has yet to signal overvaluation, suggesting room for further price increases.

  • Current levels are far from the overheated bands seen in past bull markets.

Bitcoin’s Path to $146,000

Despite the cryptocurrency’s inability to breach $100,000 on Nov. 22, Bitcoin remains in a bullish phase.

  • Correction Possibility: Analysts warn of a potential 30% retracement before BTC breaks the six-figure barrier.

  • Long-Term Outlook: Institutional accumulation and subdued retail activity are expected to support Bitcoin’s upward momentum, with a top target of $146,000.

Bitcoin Bull Market Has Room to Run

Bitcoin’s (BTC) valuation metrics and market dynamics point to a continued bull market, driven by institutional investors and favorable market conditions. With no signs of overvaluation and significant upside potential, BTC remains poised for further growth, potentially reaching $146,000 in this cycle.
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