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Bitcoin has continued its strong bullish momentum and traded at all-time highs. Today, the asset has reached a new all-time high of approximately $93,477. This ATH was reached not too long ago after an earlier dip today to $85,000.
However, at the time of writing, BTC has seen a slight pullback, now down 0.5% from its peak and currently trading at $92,544, although it is still up 5.6% over the past day.
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Bitcoin finally at its peak?
Amid BTC’s price surge, market analysts have offered their views on Bitcoin’s potential trajectory. Crazzyblockk, a CryptoQuant analyst, addressed questions about whether Bitcoin has reached its peak by evaluating market profitability indicators.
According to Crazzyblockk, two key metrics are essential for assessing Bitcoin profitability: the number of Bitcoin addresses currently making a profit and the overall profitability rate for these addresses. The analyst noted that almost all Bitcoin addresses are profitable, indicating increased market risk.
However, he also noted that current profit margins across various investment periods remain lower than those observed during previous bull markets, such as the 2019-2020 and 2021 uptrends, where profit margins reached 800-900%.
Despite concerns about possible short-term price corrections due to increased market risks, Crazzyblockk expressed confidence in Bitcoin’s long-term upward trajectory.
He emphasized that strategies such as Dollar-Cost Averaging (DCA) and maintaining a long-term investment approach could benefit capital growth in this environment.
More room for profit?
In a separate one analysisCryptoQuant analyst Avocado Onchain highlighted the miner activity and its implications for Bitcoin’s price movement. Avocado noted that some Bitcoin miners have already started making profits, but this does not necessarily indicate a weakening of Bitcoin’s overall upside potential.
He pointed to the Miner Position Index (MPI), which tracks the outflow of Bitcoin from miners’ wallets relative to the annual average. A high MPI indicates increased selling activity from miners, which could indicate that Bitcoin’s price may be approaching a cycle peak.
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So far, recent data has shown a slight increase in the MPI as Bitcoin reached new all-time highs. Avocado explained that this could mean early positioning for the next market cycle. Converting MPI to a 30-day moving average provides clearer signals regarding market cycles.
The analyst identified patterns of profit-taking by miners near cycle tops, often followed by subsequent price increases and ultimately longer-term downward trends. Avocado Onchain also highlighted additional data supporting the potential for further Bitcoin price growth.
Hashrate and mining issues, key indicators of mining activity and network security, have reached new highs, reflecting strong miner participation and the overall health of the network.
This data, combined with continued market interest and growing liquidity, suggests that Bitcoin’s price could continue upwards in this cycle, as suggested by Avocado’s analysis.
Featured image created with DALL-E, Chart from TradingView
