The call of the Bitcoin price reaching $100,000 cooled off this past week, especially after the premier cryptocurrency slipped beneath $93,000 during the last seven-day span. Fortunately, BTC has somewhat recovered from the slump, climbing as high as $98,500 on Friday, November 29.
Following the recent Bitcoin price decline, investors have been left wondering if the market cycle top is close — or if there is still more room for growth. A prominent on-chain analytics firm has revealed that the crypto market is still in a bullish phase.
Bitcoin Still In A Bull Market, But Blockchain Firm Sounds Warning
In its latest report, the market analytics platform CryptoQuant has put forward a target for the Bitcoin price top in the current cycle. According to the blockchain firm, the market leader’s price top is more in the range of a six-figure valuation.
The major rationale behind this projection is based on the realized price valuation metric, which measures the price at which each coin was last transacted. From a historical perspective, this Bitcoin price band has often acted as an indicator of the market top in past cycles.
According to CryptoQuant, the realized price metric is currently pointing to $146,000 as the possible peak in this cycle. As shown in the chart below, the price band (the red line), currently around $147,000, acted as the market top around April and May 2021.
Source: CryptoQuant
Furthermore, the holdings of new investors are yet to reach an extreme level, which was a signal in the past two market tops. As of now, the value held by new Bitcoin investors represents a little above 50% of the total money in BTC; this figure significantly pales compared to 90% and 80% witnessed in 2017 and 2021, respectively.
CryptoQuant warned:
Bitcoin price tops typically occur when new investors enter the market to buy at extremely high prices, which causes them to hold a large
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Author: Opeyemi Sule
