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Is the Bitcoin Price Peaking at $146,000? Insights from CryptoQuant’s Analysis

Bitcoin Price

Recently, the anticipation for Bitcoin to hit $100,000 has diminished as its price dipped below $93,000 over the past week. However, Bitcoin (BTC) managed a rebound, reaching a high of $98,500 on Friday, November 29.

This recent price fluctuation has left investors speculating whether we are nearing the peak of the market cycle or if further increases are possible. An established on-chain analytics company suggests that the cryptocurrency market remains in a bullish trend.

Bitcoin Remains Bullish, But Cautions Issued by Blockchain Analysts

In its recent findings, CryptoQuant has projected a potential price peak for Bitcoin this cycle, estimating it could reach six figures.

This forecast is grounded in the realized price valuation metric, which indicates the last transaction price of each coin. Historically, this price level has often signaled market tops in previous cycles.

CryptoQuant points to a realized price metric suggesting that $146,000 could be the maximum in this cycle. The current price band around $147,000 has previously marked peaks, notably in April and May 2021.

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Additionally, the amount held by new investors has not yet reached the extreme levels seen during previous market highs. Currently, new Bitcoin investors hold just over 50% of the total Bitcoin value, which is significantly lower than the 90% and 80% seen in the previous peaks of 2017 and 2021, respectively.

CryptoQuant cautioned:

Bitcoin price tops generally coincide with new investors buying at high prices, resulting in them controlling a large part of the invested total.

Furthermore, retail trading volumes have not yet reached the levels typically associated with Bitcoin price peaks. Historically, price surges have often occurred during aggressive accumulation by retail investors, which is currently not the case.

It’s important to note that CryptoQuant anticipates a possible short-term price correction for Bitcoin. They indicate that MicroStrategy’s stock appears overvalued compared to its Bitcoin holdings.

Current Bitcoin Price Overview

At the time of this report, Bitcoin’s price is approximately $96,500, showing an increase of nearly 3% in the past 24 hours. While this daily rise has alleviated some losses from the past week, BTC remains over 2% down within that timeframe.

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Bitcoin Price

Featured image created by DALL-E, chart from TradingView

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