Recent on-chain data shows Bitcoin might bust above $100,000. Although the price of Bitcoin recently corrected from $91,000 to $99.6k, analysts say the market is still in bullish territory.
CryptoQuant suggests a Bitcoin price ceiling of $146,000 based on the token’s realized price, representing the average purchase price for all circulating Bitcoin. This is the same peak level as previous bull markets, such as the April, May, and January 2021 price surges. Bitcoin has yet to overcome this threshold, making analysts believe the market is far from overvalued amidst more growth room.
Bitcoin’s Price Target: $146K
CryptoQuant’s data shows that Bitcoin’s realized price valuation could set a potential top of $146,000, a level Bitcoin has hit previously from which a market cycle top has occurred. Despite Bitcoin soaring to $99.6k in the past day, analysts still point out that the price hasn’t quite perked into the overbought conditions commonly seen at market tops. Bitcoin could still have some leeway before reaching the $146k mark.
Also, CryptoQuant data shows that new Bitcoin holders control less than 50 percent of total invested value, far behind peaks seen in past bull markets. For example, in 2017 and 2021, 90% and 80% of the total market value involved new entrants. There is no large retail investor presence, which suggests the current market rally has yet to go as far as to see extremes like we are always at the top of a bull market cycle.
But large investors, or whales, for the sake of clarity, are becoming increasingly convinced of Bitcoin’s future. This is a bullish signal, as per CryptoQuant, as these whales have added 130,000 Bitcoins to their portfolio. Key drivers behind Bitcoin’s price appreciation are often institutional investors and long-term holders, and their accumulation further cements the belief that Bitcoin’s price may push higher in the future.
It’s also encouraging to see less frenzied retail activity, which is usually a sign of a top in the market cycle. Of course, market overheating is not yet a reality since retail investors have cut their holdings of Bitcoin by around 41,000 in the past month.
Another positive sign for Bitcoin is that broader macroeconomic trends also favour digital assets, driving demand for and a price increase of these assets. CryptoQuant analysts suggest that continuing to push Bitcoin’s price higher would be fueled by increased institutional adoption, Bitcoin exchange-traded fund (ETF) approvals, and a favourable regulatory environment in the U.S.
An increasing number of analysts now believe that Bitcoin, with a realized price valuation putting it on its way to a $146,000 price target, will likely exceed $100,000 at some point. With the bull market continuing and the demand for Bitcoin from institutions increasing, CryptoQuant analysts believe the current rally isn’t halfway to being over.
Lastly, considering an upbeat macro trend alongside on-chain data, there is enough likelihood of Bitcoin’s price having room to run further before its next peak, with $100,000 potentially not even that far away.
This news is republished from another source. You can check the original article here
