Bitcoin has recently surged to a new all-time high of approximately $124,450, sparking debate among analysts about whether this marks the peak of the current cycle. While some technical indicators suggest a potential top, on-chain data and broader market sentiment indicate that Bitcoin may have further room to grow, with some analysts predicting a potential rise to $150,000 or higher.
Key Takeaways
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Bitcoin's recent peak at $124,450 is unlikely to be the cycle top, as most of the 30 widely followed peak indicators remain neutral.
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Recent price drops are seen as a capitulation phase for new investors, while seasoned holders remain unfazed.
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Holding above the 20-week Exponential Moving Average (EMA) keeps Bitcoin's upward trajectory towards $150,000 intact.
On-Chain Indicators Suggest Further Upside
Despite reaching new highs, several on-chain metrics suggest Bitcoin has not yet peaked. Indicators like the Puell Multiple and MVRV Z-Score are in neutral territory, far from the overheated levels seen at previous cycle tops. For instance, the Puell Multiple is at 1.39, well below the 2.2 danger zone historically associated with price peaks.
Investor Behavior and Market Structure
On-chain data reveals a classic capitulation phase, where newer investors, holding BTC for less than a month, are selling at a loss. Conversely, short-term holders (1-6 months) remain profitable, indicating a healthy transfer of assets to holders with stronger conviction.
Sources
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Bitcoin's "$124K Top" Fears Dismissed as 30/30 BTC Peak Indicators Stay Neutral, Cointelegraph.
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Will Bitcoin Price Crash Again After Hitting $124K All-time High?, Cointelegraph.
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