- As Bitcoin price reached a new all-time high of $70,000 on Friday, the biggest question in the investor community is whether this rally will continue.
- Highlighting a significant dynamic in the Bitcoin market, CrediBULL crypto sheds light on the ongoing struggle between spot buyers and passive sellers.
- Analyzing data from past cycles, CryptoQuant suggests that growth phases typically last between approximately 83 to 387 days.
While the Bitcoin price is recording new highs, reviews from the on-chain analytics firm reveal how long the rise will continue.
Bitcoin Price Hits New Highs
As Bitcoin price reached a new all-time high of $70,000 on Friday, the biggest question in the investor community is whether this rally will continue. As of the time of writing, BTC is trading at $68,130, with a market value of $1.325 trillion.
Renowned crypto analyst CrediBULL crypto draws attention to a significant dynamic in the Bitcoin market, shedding light on the ongoing struggle between spot buyers and passive sellers. According to the analysis, there has been a substantial spot buying, involving about $700 million worth of Bitcoin, within a narrow price range. However, despite this aggressive buying activity, the Bitcoin price is struggling to make significant upward progress as passive sellers are currently limiting the price.
The fundamental question posed by CrediBULL crypto is which side will deplete its resources first: passive sellers or active buyers. Despite the Open Interest (OI) remaining flat, the analyst suggests that current market dynamics mainly involve spot buyers and sellers, with leveraged traders mostly watching from the sidelines.
Additionally, the analyst notes that the funding rates in the market are quite low, indicating a healthy environment for trading. CrediBULL crypto is optimistic about the potential for a significant upward move if active buying pressure continues to surpass passive sellers. Bitcoin ETFs, such as BlackRock’s IBIT, have reached new highs with $12 billion in assets.
However, if sellers maintain control, the potential size of a possible downturn is expected to be limited. Due to the lack of significant open interest in the market, the likelihood of a substantial downside liquidation is lower.
In conclusion, CrediBULL crypto emphasizes the overall trend of Bitcoin’s price increase over time, advising investors to view dips as buying opportunities and ultimately expect upward movement in the market.
Bitcoin Growth Cycle Could End in 150 Days
On-chain platform CryptoQuant sheds light on Bitcoin trends using the aSOPR metric. The Adjusted Output Profit Ratio (aSOPR) represents the ratio of spent outputs (those existing for more than an hour) that were profitable within a specific time window. This adjustment is made by excluding the movements of coins existing for less than an hour.
If the aSOPR value is above ‘1’, it indicates that more investors are selling their assets at a profit. Conversely, values below ‘1’ indicate that more investors are selling at a loss. Analyzing data from past cycles, CryptoQuant suggests that growth phases typically last between approximately 83 to 387 days.
Taking the midpoint of this range, the average duration comes out to be around 235 days. Based on the current trend, considering that the ongoing growth period has lasted 138 days, it suggests a possibility that the Bitcoin growth cycle might end within the next 100-150 days.
Other market analysts predict that when the Bitcoin growth cycle stops, altcoins will steer the next stage of the overall market rally.
