Bitcoin's bullish streak persists, despite escalating figures in certain key metrics: CryptoQuant's Analysis
Bitcoin has been cruising through a bull market, but a recent analysis suggests it might've hit a temporary peak. This might set the stage for a significant price correction before another rally happens.
According to CryptoQuant, a market analytics platform, metrics showing Bitcoin's demand growth are heating up. However, overall, conditions remain bullish, and the Bull Score Index, provided by CryptoQuant, currently stands at 80. Historically, BTC has continued to gain when the index stays above 50.
Whale Accumulation May Slow Down
Analysts at CryptoQuant mention that BTC balances held by whales have elevated by 2.8% over the past month. Moreover, Bitcoin's demand growth stands at 229,000 BTC during the same period, which is close to the demand growth recorded in December 2024 at 279,000 BTC when BTC broke the $100,000 mark for the first time. Such spikes frequently precede a decline in whale accumulation, as analysts often say, BTC requires strong demand to maintain a rally.
In addition, the Bitcoin Traders' Unrealized Profit Margin has neared a level that usually indicates price resistance. Data indicates that bitcoin's price surge slows down when the metric nears 40% or plunges below its 30-day moving average, which currently rests at 19%. When BTC surpassed $111,000 last week, the margin reached 32%, meaning it came close to 40%, marking an overheated state.
BTC Dips Below $104K
Analysts assume that $120,000 could be the next major resistance level for BTC if it proceeds to rally. This is because $120,000 falls within the upper band of the Traders' On-chain Realized price, where the unrealized profit margin rests at 40%. Historical data indicates that this upper band has consistently served as a resistance point during bull markets.
While BTC still holds the possibility of continuing its rally, the cryptocurrency has slumped below $104,000 at this moment. Data from CoinMarketCap showed BTC declining 2% within 24 hours, dipping from the $105,000 level.
Meanwhile, traders have realized some profits after the recent price surge, but those levels are relatively modest compared to past markets. This implies that the bull cycle is not coming to an end; instead, market conditions suggest continued strength in bitcoin's upward trajectory.
Python for Bitcoin Predictions
Various predictions about Bitcoin's future price range widely based on different analyses and models. While some highly optimistic options trades bet on Bitcoin hitting $300,000 by June 2025, other forecasts believe that it will likely stay above $100,000 by the same date. These predictions underscore the differing views in the market, affected by factors such as institutional demand, macroeconomic conditions, and market sentiment. CryptoQuant's report of overheating demand metrics may support more positive predictions, but market conditions can change rapidly.
- Despite the recent temporary peak in Bitcoin's price, the high demand growth and Bull Score Index of 80 suggested by CryptoQuant indicate that conditions remain bullish.
- The Bitcoin Traders' Unrealized Profit Margin nearing a level that usually indicates price resistance, and the decline in BTC below $104,000, according to CoinMarketCap, may hint at a potential short-term correction or consolidation before another rally happens.
