On-Chain Indicator Sets Bitcoin Cycle Top Price At $141K – Details

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As a seasoned researcher with over two decades of experience in financial markets, I have witnessed numerous market cycles and their intricacies. Watching Bitcoin’s current bullish breakout brings a sense of excitement that is reminiscent of the dot-com bubble days but with an added layer of mystery given the decentralized nature of cryptocurrencies.

As an analyst, I’ve been closely monitoring the extraordinary surge in Bitcoin prices recently. Over the last three weeks, we’ve witnessed a breathtaking bullish breakout that has smashed previous all-time highs almost daily. Remarkably, the price is now hovering just under 2% from the $100,000 mark – a significant psychological threshold. If this level is breached, it could serve as a pivotal moment for the entire crypto market, potentially igniting a fresh wave of market momentum and broader adoption among investors.

According to data from CryptoQuant CEO Ki Young Ju, Bitcoin’s current surge might not have peaked yet. Ju points out that, despite the rise in prices, the overall market cap hasn’t increased drastically compared to the amount of capital flowing into the network. This suggests that the price movement is driven by genuine demand rather than excessive speculation, which strengthens the belief that Bitcoin will continue its bullish trend.

As Bitcoin moves towards $100,000, its progress might establish a trend for the entire crypto market. If it manages to surpass this level or encounters resistance, the result will probably impact investor sentiment, shedding light on what may happen next for Bitcoin and the broader cryptocurrency sector.

Bitcoin Metrics Set High Expectations

Bitcoin is consistently reaching new peaks, but it’s having a tough time surpassing the significant $100,000 mark. However, the general optimism surrounding the market remains strong as analysts believe the price may still increase further. CryptoQuant CEO Ki Young Ju has offered intriguing perspectives on Bitcoin, suggesting that the cycle top might possibly reach over $141,000.

Based on Ju’s assessment, the present market trends indicate that Bitcoin (BTC) is likely still in its initial bull phase, implying it’s too soon to label the current rally as a bubble. A crucial point Ju emphasizes is the rising realized cap, which has been consistently climbing day by day. The realized cap, computed by adding up the value of all BTC that were last moved on the blockchain, functions as an indicator of the overall capital flowing into the Bitcoin market.

In bull markets, Bitcoin’s market capitalization typically surpasses its realized capitalization, a trend that Ju highlights, as this is when retail investors tend to flood in and drive the market cap to peak. Conversely, during bear markets, the market capitalization frequently dips below the realized capitalization.

As the actual value of the cap keeps increasing, it strengthens the belief that Bitcoin’s price will continue to climb, possibly even reaching or exceeding $141,000 prior to the market reaching its peak. This evaluation suggests that, despite Bitcoin experiencing difficulty in breaking through the $100,000 mark, there remains substantial potential for further growth before a possible top is attained.

BTC Growing Demand Pushing Price Up

Bitcoin is nearly achieving its all-time highest weekly closing price, with its value hovering just below the $100,000 threshold at approximately $98,000. The recent market activity reinforces a bullish trend known as a “cup and handle” formation that began in November 2021.

This pattern indicates that Bitcoin might be establishing a robust foundation. If it manages to surpass $98,000 and confirm this breakout, it could pave the way for a rapid jump over the psychological barrier of $100,000 as soon as tomorrow. A powerful close today might indicate the continuation of the bullish trend, suggesting potential for more upward thrust.

Yet, there’s a bit of apprehension concerning the possibility of a fragile surge beyond $100,000. If the price fails to sustain itself above this level following the breakout, it might cause a retreat, paving the way for a readjustment before the next upswing in the rally.

If the price doesn’t maintain above $98,000 today, it could increase the chances of a temporary pullback. Areas below this point could become crucial in assessing the vigor of the ongoing upward trend. However, even with the prospect of a small correction, the general market outlook is optimistic, as many analysts believe that significant growth will continue if the $100,000 threshold is broken convincingly.

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2024-11-24 17:42