A recent analysis by a blockchain data platform, CryptoQuant, indicates that Bitcoin has not reached the zenith of its current bull run. The cryptocurrency, after achieving a record price of $73,700, began to correct as various investors, including miners and whales, started cashing in on their holdings. Despite this, market trends and investment behaviors suggest that the bull cycle is still in motion.
Market Indicators and Investor Behavior
CryptoQuant’s analysis points out that even after a significant price drop from its all-time high, resulting in a sell-off, Bitcoin’s bull phase isn’t considered overextended according to historical benchmarks. The Bull-Bear Market Cycle Indicator, which recently highlighted an overheated market, has since cooled down. Additionally, the platform notes that unrealized profit margins remain high, suggesting the presence of bullish sentiment.
The data shows that large Bitcoin holders began to offload their assets when the price soared past $70,000, with a substantial number of Bitcoins being transferred on the day the price peaked. It was also observed that miners, who were enjoying record revenues due to the price surge, played a significant role in these asset transfers, particularly in the over-the-counter (OTC) market.
Bitcoin’s Bull Run Continues
In the United States, Bitcoin’s demand dipped following its march towards $73,000, which is reflected in the negative shift of the Coinbase Premium index. Analysts speculate that should the correction persist, Bitcoin might retreat to a price range that aligns with the cost basis of its largest short-term holders, estimated between $58,000 and $60,000.
Further assessments reveal that the current investment flow in Bitcoin is relatively low, signaling that the peak may still be on the horizon. This cycle is different from previous ones where the majority of investments were from short-term holders towards the end. In contrast, the present cycle has less than half the investment from this group, underscoring the potential for continued growth before the bull run concludes.