The Bitcoin worth has been a pleasure to observe over the previous few weeks, bouncing again strongly from its $74,000 low to recuperate above the $100,000 degree once more. Interestingly, the newest on-chain knowledge means that the premier cryptocurrency might be making ready to reclaim its present all-time-high worth and maybe embark on a fresh bull run.
Bitcoin Price To Follow Gold’s Footsteps
In a Quicktake publish on the CryptoQuant platform, on-chain analyst Ibrahim Cosar put forward a data-focused perception into the potential trajectory of the Bitcoin worth over the subsequent few months. The related metric right here is the Growth Rate Difference (Market Cap vs. Realized Cap), which seems on the distinction within the development fee between an asset’s market capitalization and realized capitalization.
According to Cosar, the Growth Rate Difference metric helps consider investor conduct (whether or not the market is overly pessimistic or optimistic) and the totally different market cycles. The indicator additionally helps to determine the correlation between precise worth development and worth development, whereas assessing the sustainability of a worth development.
Source: CryptoQuant
As seen within the chart above, the optimistic space (denoted by the inexperienced shade) usually alerts bullish market circumstances. It means that the market cap is rising sooner than the realized cap, with extra traders entering the market and taking new positions.
The unfavorable (crimson) zone correlates with bearish market circumstances and main worth corrections, as extra traders offload their property. With costs dropping and elevated loss realization, investor confidence out there begins to say no.
The highlighted chart reveals that the Bitcoin worth simply witnessed a shift from crimson (bear market) to inexperienced (bull market) in latest days. Cosar believes that this modification implies a possible parabolic rise within the worth of BTC — as seen within the gold worth over the previous few months.
Bull Cycle Might Still Be On: CryptoQuant CEO
Two months in the past, CryptoQuant Founder Ki Young Ju postulated that the value of BTC had reached its peak and that the bull cycle was over. However, following the spectacular efficiency of the Bitcoin worth in latest weeks, the on-chain analytics skilled has walked again on their declaration.
According to Ju, the Bitcoin market has develop into comparatively extra various and appears to be transferring away from the normal cycle principle. The crypto CEO alluded to the previous cycles being managed by the outdated whales, miners, and new retail traders, whereas exchange-traded funds (ETFs) issuers, Strategy (MSTR), and institutional traders are the primary gamers within the present one.
Ju, nevertheless, talked about that the Bitcoin market continues to be sluggish whereas absorbing new liquidity, though the latest worth motion is extraordinarily bullish. Hence, the crypto founder hinted at ready for a clearer sign earlier than taking new market positions.Â
As of this writing, the flagship cryptocurrency is valued at simply above $103,000, reflecting no vital motion previously 24 hours.
The worth of BTC on the every day timeframe | Source: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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