The Bitcoin price recently experienced a slight dip, falling below $93,000 before climbing back up to around $98,500. This has left investors wondering if the market cycle top is near or if there is still room for growth. According to CryptoQuant, a prominent on-chain analytics firm, the crypto market is still in a bullish phase with more potential for growth.
In its latest report, CryptoQuant has projected that the Bitcoin price top in the current cycle could reach a six-figure valuation. The firm’s analysis is based on the realized price valuation metric, which historically has indicated the market top in previous cycles. Currently, the realized price metric is pointing to a possible peak of $146,000 for Bitcoin in this cycle.
One key factor supporting this projection is that the holdings of new investors have not yet reached extreme levels as seen in past market tops. Currently, the value held by new Bitcoin investors represents a little over 50% of the total money in BTC, which is significantly lower compared to previous cycles. This suggests that the market may still have room for growth before reaching its peak.
Although CryptoQuant expects a short-term pullback in the Bitcoin price, retail trading activity has not reached levels typically associated with price peaks. Historically, bull cycles have peaked when retail investors aggressively accumulate coins, but this trend is absent in the current market conditions. This indicates that there may be further potential for growth in the Bitcoin market.
As of the latest data, the price of Bitcoin stands around $96,500, reflecting a nearly 3% increase in the past 24 hours. While this one-day rally has helped offset some of the losses from the past week, the premier cryptocurrency is still down by over 2% within that timeframe. Overall, the market analysis suggests that Bitcoin is still in a bullish phase with potential for growth towards a six-figure valuation in this cycle.
