Cryptocurrency analytics agency CryptoQuant means that Bitcoin’s March 2024 all-time excessive just isn’t the market’s last peak.
Primarily based on on-chain information, analysts imagine that the March peak may very well be an “preliminary peak” reasonably than the ultimate peak of the present bull cycle.
In accordance with analysts, a key metric supporting this evaluation is Binary Coin Days Destroyed (CDD), which tracks the exercise of long-term BTC holders. Whereas there’s a noticeable profit-taking by these buyers round March 2024, Binary CDD has but to achieve the crucial “purple zone” that sometimes alerts the tip of a bull market. Traditionally, this degree has been reached earlier than the market has skilled its current peak, indicating that there should be room for additional value appreciation.
As well as, in accordance with CryptoQuant, information means that exercise from long-term holders is at the moment stagnant and promoting stress from these holders has considerably decreased. This lack of large-scale promoting means that the market is immature and nonetheless removed from the last word peak. The present interval of consolidation following the March highs could also be a short lived “cooling” section.
As soon as this consolidation section is over, CryptoQuant analysts predict that one other upward value transfer might happen. They count on long-term holders to re-engage as Bitcoin approaches its eventual peak, with Binary CDD possible reaching the purple zone, signaling the subsequent main value adjustment.
*This isn’t funding recommendation.