Summary:
Bitcoin price dipped below $93,000 but recovered to $98,500.
CryptoQuant projects a potential price top around $146,000.
Current holdings of new investors represent just over 50% of total Bitcoin value.
CryptoQuant warns of a potential pullback in Bitcoin's price.
Current Bitcoin price stands at approximately $96,500, with a 3% increase in the last 24 hours.
Bitcoin Price Dynamics
The anticipation surrounding Bitcoin's price reaching $100,000 has cooled recently, especially after it dipped below $93,000 last week. However, the cryptocurrency managed to recover slightly, reaching $98,500 on November 29.
Market Sentiment
Despite the recent downturn, investors are questioning whether we are nearing the market cycle top or if there's still potential for further growth. According to CryptoQuant, a leading on-chain analytics firm, the crypto market remains in a bullish phase.
CryptoQuant's Price Target
In their latest report, CryptoQuant has set the Bitcoin price target for this cycle at approximately $146,000. This projection is grounded in the realized price valuation metric, which indicates the price at which each Bitcoin was last transacted. Historically, this price range has often signaled market tops in previous cycles.
Investor Behavior
Interestingly, the holdings of new investors have not yet reached extreme levels, a trend observed in the previous two market tops. Currently, new investors hold just over 50% of the total Bitcoin value, significantly lower than the 90% and 80% seen in 2017 and 2021, respectively.
CryptoQuant warns that typically, Bitcoin price peaks occur when new investors buy at high prices, thereby holding a significant proportion of the total investment.
Short-Term Outlook
CryptoQuant also predicts a potential pullback in Bitcoin's price in the short term, noting that MicroStrategy’s stock price appears overheated compared to its Bitcoin holdings.
Current Bitcoin Price
As of now, Bitcoin is trading around $96,500, reflecting a nearly 3% increase in the last 24 hours. While this rally has mitigated some recent losses, Bitcoin remains down over 2% for the week.
Source: CryptoQuant
Comments