The decision of the Bitcoin price reaching $100,000 cooled off this past week, especially after the premier cryptocurrency slipped beneath $93,000 throughout 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 continues to be more room for growth. A outstanding on-chain analytics firm has revealed that the crypto market continues to be 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 recommend a goal for the Bitcoin price top in the present cycle. In response to the blockchain firm, the market leader’s price top is more within the range of a six-figure valuation.
The main rationale behind this projection is predicated on the realized price valuation metric, which measures the value 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.
In response to CryptoQuant, the realized price metric is currently pointing to $146,000 because the possible peak on this cycle. As shown within the chart below, the value band (the red line), currently around $147,000, acted because the market top around April and May 2021.
Source: CryptoQuant
Moreover, the holdings of recent investors are yet to achieve an extreme level, which was a signal previously two market tops. As of now, the worth held by latest Bitcoin investors represents somewhat above 50% of the whole money in BTC; this figure significantly pales in comparison with 90% and 80% witnessed in 2017 and 2021, respectively.
CryptoQuant warned:
Bitcoin price tops typically occur when latest investors enter the market to purchase at extremely high prices, which causes them to carry a big proportion of the whole value invested.
Furthermore, the retail trading activity is yet to hit levels often related to Bitcoin price peaks. Historically, bull cycles have been seen to top out when BTC retail investors are accumulating coins aggressively. Nonetheless, this phenomenon continues to be absent in the present market condition.
It’s price mentioning that CryptoQuant expects a pullback for the Bitcoin price within the short term. In response to the on-chain intelligence firm, MicroStrategy’s stock price is becoming overheated relative to the corporate’s Bitcoin holdings value.
Bitcoin Price At A Glance
As of this writing, the price of Bitcoin stands around $96,500, reflecting an almost 3% increase previously 24 hours. While this single-day rally has helped shave off a few of BTC’s loss previously week, the premier cryptocurrency continues to be down by over 2% inside the timeframe.
The worth of BTC on the day by day timeframe | Source: BTCUSDT chart on TradingView
Featured image created by DALL-E, chart from TradingView