The call of the Bitcoin price reaches $100,000 has cooled off over the past week, especially after the major cryptocurrency fell below $93,000 over the past seven days. Fortunately, BTC has recovered somewhat from the slump and rose to $98,500 on Friday, November 29.
After Bitcoin’s recent plunge, investors are wondering if the top of the market cycle is near – or if there is still more room for growth. A leading on-chain analytics firm has revealed that the crypto market is still in a bullish phase.
Bitcoin Is Still in a Bull Market, But Blockchain Firm Sounds Cautionary
In its latest report, the market analysis platform CryptoQuant brought forward a target for the Bitcoin price top in the current cycle. According to the blockchain company, the market leader’s price peak is closer to a six-figure valuation.
The main reason behind this projection is based on the realized price appreciation metric, which measures the price at which each coin last traded. From a historical perspective, this Bitcoin price range has often served as an indicator of the market top in previous cycles.
According to CryptoQuant, the realized price measure currently points to $146,000 as a possible peak in this cycle. As shown in the chart below, the price range (the red line), currently around $147,000, acted as the market top around April and May 2021.
Source: CryptoQuant
Furthermore, new investors’ holdings have yet to reach extreme levels, which was signaled in the past two market tops. From now on the value is held by new Bitcoin investors represents just over 50% of the total money in BTC; this figure pales considerably compared to the 90% and 80% in 2017 and 2021 respectively.
CryptoQuant warned:
Bitcoin price spikes typically occur when new investors enter the market to buy at extremely high prices, thus controlling a large portion of the total invested value.
Furthermore, retail trading has not yet reached levels often associated with Bitcoin price spikes. Historically, bull cycles are seen to peak when BTC retail investors aggressively accumulate coins. However, this phenomenon is still absent in current market conditions.
It’s worth mentioning that CryptoQuant expect a drop in the Bitcoin price in the short term. According to the on-chain intelligence firm, MicroStrategy’s stock price is becoming overheated relative to the value of the company’s Bitcoin holdings.
Bitcoin price at a glance
At the time of writing, the price of Bitcoin amounts to approximately $96,500, reflecting an increase of almost 3% in the last 24 hours. While this one-day rally has helped erase some of BTC’s losses over the past week, the major cryptocurrency is still down more than 2% within the time frame.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image created by DALL-E, chart from TradingView