Analyst Predicts Final Leg Up for Bitcoin in Current Market Cycle
CryptoQuant reports that Bitcoin (BTC) may not have reached the peak of its current market cycle. A key on-chain metric indicates a potential final rise before this bull market concludes.
Bitcoin's Current Status
- Bitcoin has dropped over 23% from its recent all-time high of $108,786 on January 8.
- The decline is influenced by global macroeconomic uncertainties, particularly related to US tariff policies.
Crypto Dan from CryptoQuant suggests there is still potential for BTC to rise. He highlights the six to twelve-month volume ratio as an important indicator for market cycle progression. His analysis shows:
- The volume ratio typically declines first, signaling the end of the early bull cycle phase.
- A subsequent decline marks the end of the bull cycle.
- A rally often follows the initial decline, attracting latecomers and retail investors.
- A second decline in the volume ratio indicates the peak of market euphoria and precedes a correction.
Recent data indicates BTC is at a critical point, entering a second dip in the volume ratio, possibly leading to a new peak.
Market Sentiment Among BTC Holders
- Indicators show that holders view the current pullback as temporary.
- Short-term BTC holders are retaining their assets despite losses, anticipating a bullish reversal.
- Exchange net flow data suggests reduced selling pressure, indicating a potential price rally.
- As of now, BTC is trading at $82,086, down 1.5% in the last 24 hours.