The Bitcoin worth continued its red-hot type over the previous week, printing successive all-time highs in lower than 5 days. While Donald Trump’s success on the United States elections may need kickstarted the current rally, the expansion of the premier cryptocurrency — and the final crypto market — appears to have developed a lifetime of its personal.
Interestingly, the market has been left questioning the place the subsequent market high is, with some pundits and commentators believing that the BTC worth rally has come to an end. However, a outstanding on-chain analytics agency has come ahead to say that the Bitcoin worth nonetheless has room for some upside motion.
Four Reasons Why $100,000 Is Possible For Bitcoin Price: CryptoQuant
In its newest weekly report, CryptoQuant revealed that Bitcoin, the world’s largest cryptocurrency by market capitalization, is but to be overvalued regardless of its current constructive momentum. According to the blockchain platform, the market chief might quickly attain the highly-coveted worth degree of $100,000.
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The rationale behind this projection relies on invaluable metrics, such because the MVRV (market worth to realized worth) ratio. As the title suggests, this indicator measures the ratio between the market worth and the realized worth of a cryptocurrency. As such, the MVRV helps to evaluate the tops and bottoms of the Bitcoin market.
CryptoQuant famous that Bitcoin is just not but overvalued on the present worth ranges, because the MVRV metric continues to be exterior the overvalued area. This finally implies that the bullish worth motion is just not overheated, and the Bitcoin worth might nonetheless make a play for larger costs.
What’s extra, the Trader On-chain Realized max band is pointing to $100,000 as the subsequent goal for the Bitcoin worth. According to CryptoQuant, the final time the max band reached its present degree was in March 2024 when the premier cryptocurrency surpassed the $70,000 degree for the primary time.
Another on-chain statement that helps the continual Bitcoin worth rally is the demand growth. CryptoQuant highlighted that investor demand within the United States has returned for the reason that presidential election, with Coinbase Premium remaining constructive up to now few days.
Finally, crypto market liquidity has continued to extend over the previous few weeks, as stablecoins make their onto exchanges. For context, greater than $3.2 billion in USDT has flowed into exchanges for the reason that US election, signaling the potential of a sustained Bitcoin worth rally.
Tread With Caution
However, CryptoQuant sounded a warning in its report, saying that some selling action might comply with the current worth rally. While some Bitcoin miners have began offloading their property for revenue, the blockchain agency additionally famous that the Bitcoin promoting seen to date continues to be insignificant however might rise rapidly quickly.
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As of this writing, the Bitcoin worth stands round $91,270, reflecting a 4% improve up to now 24 hours. According to CoinGecko, the flagship cryptocurrency is up by greater than 19% up to now week.
Featured picture from iStock, chart from TradingView
