Recent evaluations of Bitcoin’s market metrics indicate that the current bull market is thriving, with exciting prospects of reaching unprecedented highs. Analysts have pinpointed a price target of $146,000 for this cycle, highlighting that overvaluation signs typically seen at market peaks are absent.
Investor Trends
A report from CryptoQuant reveals that the volume of assets held by new Bitcoin investors is still significantly below the levels seen in previous cycles. At present, newcomers account for just over 50% of total Bitcoin investments, a stark contrast to earlier market booms in 2017 and 2021, when these figures topped 90% and 80%, respectively.
This gap could be linked to a recent decline in retail investment activity. Analysis suggests that an uptick in retail buying often indicates an approaching market peak. Since October, retail investors have offloaded approximately 41,000 BTC, while larger investors have taken the opportunity to accumulate, adding 130,000 BTC in the same period.
Market Dynamics
Historically, bull markets have wrapped up when retail investment surges, a phenomenon not currently observable. Instead, the market appears to be driven primarily by institutional and large-scale investors during this accumulation phase. November also witnessed remarkable growth in Bitcoin exchange-traded fund (ETF) investments, with inflows peaking at an astonishing $3.1 billion for the week ending November 22, coinciding with Bitcoin’s peak price of $99,655.50.
After nearly reaching $99,000 on November 26, Bitcoin’s price fell to about $91,000, which prevented it from overcoming the formidable $100,000 resistance. Some analysts predict a potential correction of around 30% could occur before Bitcoin successfully breaks the six-figure mark.
Growth Potential
CryptoQuant’s market cycle indicator continues to display bullish signals, maintaining a steady climb since early November. However, it hasn’t yet approached the overheated levels last seen in March 2024, when Bitcoin surged past $70,000.
Considering the realized price evaluation, experts believe that a target price of $146,000 is optimal for Bitcoin. Historically, this price range has acted as a cap during previous cycles, notably observed between April and May 2021. The report underscores that the Profit and Loss Index has not yet hit the overvalued stage during the current cycle, indicating that cryptocurrencies still possess ample room for growth.
Source: Cointelegraph
