CryptoQuant: The bull market is not over yet! Bitcoin’s rising cycle will continue

After Bitcoin (BTC) broke through a record high of $73,000 in the middle of this month, it entered a price correction phase, with the highest point falling by more than 17% to $60,775. In this regard, CryptoQuant analysts pointed out that miners, whales and other market participants, including large investors, have begun to sell Bitcoin to "take profits", but judged that the Bitcoin bull market cycle is far from over: the investment inflow of new investors has been relatively small is lower, and price valuation indicators are not yet close to levels consistent with past market peaks.

Bitcoin Bull and Bear Cycle Indicator

Regarding the recent decline of Bitcoin, CryptoQuant believes that this is due to traders selling their positions in order to achieve high profit margins. As a result, the unrealized profit margin once soared to 69%, reaching a new high since March 2021. But despite the subsequent selling of Bitcoin by traders, the current unrealized profit margin is still as high as 47%: short-term Bitcoin holders, including traders, are selling Bitcoin at the highest profit margin since May 2019. This suggests that short-term Bitcoin holders are taking profits after Bitcoin prices hit all-time highs.

As the price of Bitcoin soared above $70,000, large holders began to sell Bitcoin. When the price of Bitcoin reached an all-time high on the 12th, these holders transferred a total of 567,000 Bitcoins, accounting for 35% of the total transfer volume of Bitcoin on the entire network.

Due to the increase in the price of Bitcoin, the number of Bitcoin transfers in OTC transactions by some large holders, including Bitcoin miners, has also increased. Miners’ daily revenue hits record high after Bitcoin tops $70,000.

The bull market is not over yet

CryptoQuant added that demand for Bitcoin in the U.S. market has slowed, and the Coinbase premium began to turn negative after Bitcoin hit a new all-time high. If Bitcoin continues On a pullback, it could fall to $58,000 to $60,000, which is the cost basis for large short-term holders.

But in the long term, CryptoQuant believes that Bitcoin has not yet reached the top of this bull market cycle. Currently, about 48% of Bitcoin buying funds come from short-term investors. Historically, when short-term The bull cycle will not end until investors account for 84%-92% of Bitcoin investments.

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