Is $100,000 the Limit for Bitcoin Rally or Will There Be More to Come? Here is the Clear Vision for the Summit

Crypto even analysis firm CryptoQuant, Bitcoin’in evaluated its recent rally and concluded that the bull market remains strong despite the recent price correction.

Bitcoin reached an all-time high of $99,900 last week but has since retreated to around $93,000. At the time of writing this article, there is a recovery again. According to CryptoQuant, onchain fundamental indicators show that BTC is far from reaching the market top.

CryptoQuant’s analysis highlights that Bitcoin’s realized price valuation (an indicator based on the average price at which all coins have most recently moved) sets an upper target of $146,000. Historically, this valuation level marks the peak of Bitcoin cycles, as seen in January 2021 and April-May 2021.

“From a realized price appreciation perspective, Bitcoin has room to grow before reaching overvalued levels that typically precede the end of a bull cycle,” CryptoQuant said.

One of the critical factors marking the market top is the activity of new Bitcoin investors. Currently, the value held by new investors accounts for just over 50% of the total money invested in Bitcoin. This figure is significantly lower than the peaks seen in the 2017 and 2021 cycles, when new investors held 90% and 80% of the total value, respectively.

“Bitcoin price peaks typically occur when new investors rush to buy at extremely high prices and hold a large share of the total value,” the analyst firm said. “This is not the case today,” he said.

High individual activity, another characteristic of previous market peaks, is also absent in the current market. While individual investors reduced their Bitcoin holdings by 41,000 BTC since October, large investors increased their holdings by 130,000 BTC during the same period.

“Previous bull cycles ended while retail investors were buying aggressively. “For today, individual activities continue to remain stagnant.”

The CryptoQuant tool Bull-Bear Market Cycle Indicator remains in the “BULL” phase and continues to intensify. The indicator is still far from the “EXTREMELY BULLISH” phase, which has historically marked the end of bull markets and was last seen in March 2024, when Bitcoin surpassed $70,000.

While the broader outlook remains bullish, CryptoQuant has pointed to a potential short-term hurdle. MicroStrategy’s stock price, which is up 113% since November 3 with Bitcoin’s rally, appears to be overheated relative to the value of the company’s Bitcoin assets. The stock price is currently approaching the upper end of valuation bands, indicating a potential correction that could indirectly affect Bitcoin’s momentum.

*This is not investment advice.