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Bitcoin continued its strong bullish momentum, trading at previously unseen highs. Today, the asset reached a new all-time high of around $93,477. This ATH was reached not long ago after an earlier drop today to $85,000.
However, at the time of writing, BTC has seen a slight pullback, now down 0.5% from its high to currently trade at $92,544, although it is still rising by 5.6% over the last day.
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Bitcoin finally at its peak?
Amid the BTC price surge, market analysts have given their views on Bitcoin’s potential trajectory. Crazzyblockk, an analyst at CryptoQuant, answered the question of whether Bitcoin has peaked by assessing market profitability indicators.
According to Crazzyblockk, two key indicators are essential to assess the profitability of Bitcoin: the number of Bitcoin addresses currently profitable and the overall profitability rate of these addresses. The analyst observed that almost all Bitcoin addresses are profitable, indicating increased market risk.
However, he also noted that current profit margins across different holding periods remain lower than those seen during previous bull markets, such as during the 2019-2020 and 2021 uptrends, where profit margins reached 800-900%. .
Despite concerns about possible short-term price corrections due to elevated market risks, Crazzyblockk expressed confidence in Bitcoin’s long-term upward trajectory.
He highlighted that strategies such as Dollar-Cost Averaging (DCA) and maintaining a long-term investment approach could promote capital growth in this environment.
More profit margin?
In a separate analysis, CryptoQuant analyst Avocado Onchain highlighted miner activity and its implications for Bitcoin price action. Avocado noted that some Bitcoin miners have already started to make 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 Bitcoin outflows from miners’ wallets relative to the annual average. A high MPI suggests increased selling activity from miners, which may indicate that Bitcoin price could be approaching a cycle peak.
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Recent data so far has shown a slight increase in MPI as Bitcoin reached new all-time highs. Avocado explained that this could represent early positioning for the next market cycle. By converting the MPI to a 30-day moving average, clearer signals emerge regarding market cycles.
The analyst identified patterns of profit-taking by miners as cycle highs approached, often followed by subsequent price increases and, ultimately, longer-term downtrends. Avocado Onchain also highlighted additional data supporting the potential for further Bitcoin price growth.
Hashrate and mining difficulty, key indicators of mining activity and network security, have reached new highs, reflecting strong miner participation and overall network health.
This data, combined with continued market interest and increasing liquidity, suggests that the price of Bitcoin could see further upside during this cycle, as Avocado’s analysis suggests.
Featured image created with DALL-E, chart from TradingView
