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Bitcoin Bull Market Hasn't Ended Yet: New Peak Target is $146,000 - Coin Bulletin
According to cryptocurrency analysts, the current valuation metrics of Bitcoin indicate that the bull market has not yet peaked and has potential for higher levels.
According to the research firm CryptoQuant's report dated November 27, Bitcoin's price target in this cycle stands out as $146,000.
The value of Bitcoin held by new investors is currently lagging behind the peak levels of previous cycles. New investors currently hold only 50% of their total Bitcoin investments. In 2017 and 2021 bull market peaks, this ratio was 90% and 80%, respectively.
In recent weeks, it has been observed that retail investors are less active in buying Bitcoin. Since October, retail investors have sold 41,000 BTC, while institutional and large-scale investors have added 130,000 BTC to their portfolios. CryptoQuant considers this situation as a contrast to aggressive retail purchases during previous bull cycles at peak periods.
The majority of Bitcoin purchases were made through exchange-traded funds (ETFs) in November. In particular, ETF inflows hit a record high of $3.1 billion in the week ending November 22. These purchases pushed the price of Bitcoin close to its all-time high of $99,655.50 that week. However, Bitcoin failed to break the $100,000 resistance level and dropped to around $91,000 on November 26.
Target of $146,000
Analyses based on Bitcoin's realized price suggest that the price peak in this cycle could be around $146,000. CryptoQuant notes that this price range has similarly behaved during the April-May 2021 period when Bitcoin peaked in past cycles.
However, some analysts believe that Bitcoin may experience a 30% correction before reaching six-digit prices. This could particularly trigger a return of retail investors to the market.
Bull market targets
CryptoQuant's bull divergence indicator has been in the bull zone since the beginning of November and continues to rise. However, this indicator is still far from the overheated bull phase in March 2024 when Bitcoin surpassed $70,000 and reached a new peak.
Bitcoin's profit and loss (P&L) index has not reached extremely overvalued levels so far. This indicates that there is still room for price increases.