Bitcoin to Overcome $100K Despite Pullback, Has Plenty of More Room Before Topping: CryptoQuant

The
analytics
firm
said
bitcoin
could
rally
to
at
least
$147,000
before
topping
if
it
repeats
the
pattern
of
previous
cycles.

Nov
28,
2024,
5:40 p.m.

Bitcoin’s
(BTC)
pullback
from
the
$100,000
level
after
continuously
hitting
fresh
new
highs
is
only
a
temporary
setback
before
eventually
shooting
past
the
barrier
to
even
higher
prices,
crypto
analytics
firm
CryptoQuant
said.

According
to
a
Wednesday
report
shared
with
CoinDesk,
multiple
blockchain
data
metrics
suggest
that
the
largest
crypto
has
more
room
to
run
before
topping.

CryptoQuant’s
custom
P&L
index,
which
combines
several
on-chain
valuation
metrics
to
signal
whether
BTC
is
overvalued
or
undervalued,
shows
that
the
asset
is
firmly
in
a
bull
market
but
far
from
the
overvalued
levels
it
reached
at
the
previous
market
peaks
in
2021,
2017
and
2013.

The
firm’s
Bull-Bear
Market
Cycle
Indicator
has
only
started
to
heat
up
after
dipping
slightly
into
bear
market
territory
earlier
this
year
as
BTC
corrected
from
March’s
record
$73,000
to
$50,000.
The
metric
is
nowhere
near
the
overheated
levels
seen
at
local
tops
at
this
March
or
other
local
tops.

Meanwhile,
participation
of
retail
investors
is
still
muted,
contrary
to
the
typical
buying
frenzy
observed
around
previous
cycle
tops.
Per
CryptoQuant
data,
retail
sold
41,000
bitcoin
since
October
lowering
their
holdings
likely
to
take
profits.
Large
investors,
meanwhile,
increased
holdings
by
130,000
BTC
during
the
same
period.

New
investors
aren’t
rushing
to
enter
the
market
either.
The
value
of
BTC
held
by
new
investors,
or
addresses
holding
the
asset
since
less
than
six
months
ago,
stands
at
50%
of
the
total
value
invested
in
bitcoin
(Realized
Cap).
That’s
far
below
the
80%-90%
levels
in
2017
and
2021.

“Price
tops
typically
occur
when
new
investors
enter
the
market
to
buy
at
extremely
high
prices,
which
causes
them
to
hold
a
large
proportion
of
the
total
value
invested,”
the
authors
said.
“Previous
bull
cycles
have
ended
when
retail
investors
buy
aggressively,
which
is
not
the
case
today.”

Bitcoin’s
peak
target

Over
the
past
week,
BTC’s
violent
run-up
after
Donald
Trump’s
U.S.
election
victory
was
halted
at
the
$100,000
barrier,
sliding
back
as
much
as
9%
from
its
latest
record.
On
Thursday,
CoinDesk
data
shows,
it
changed
hands
at
around
$95,000.

Despite
the
setback,
surpassing
the
$100,000
barrier
is
only
a
matter
of
time,
CryptoQuant
analysts
said.

Previous
bitcoin
bull
markets
topped
around
the
upper
band
of
bitcoin’s
realized
price
metric,
set
at
four
times
the
average
price
at
which
all
BTC
in
circulation
has
been
transferred
for
the
last
time.
Data
shows
that
the
realized
price
is
currently
at
$36,000-$37,000
and
quickly
rising,
marking
the
upper
band
at
$147,000.

If
the
pattern
repeats,
BTC
could
rally
to
at
least
$147,000
before
reaching
a
market
cycle
top,
per
CryptoQuant.

CryptoQuant
isn’t
the
only
firm
that
is
bullish
on
bitcoin’s
rally.
Recently,
Galaxy
Research
said
the
price
is
expected
to
reach
$100,000
in
the
near
term
and
may
run
up
higher,
citing
increasing
institutional
adoption
and
the
potential
for
the
creation
of
bitcoin
nation-state
reserves.

Read
more:

Bitcoin
Bull
Market
Is
Far
From
Over,
Galaxy
Research
Says