November 27, 2024 – Bitcoin’s valuation metrics suggest that the cryptocurrency’s bull market is far from over, with analysts predicting potential further price increases in the coming months. According to a CryptoQuant report, Bitcoin’s price could target $146,000 this cycle, a price point that has previously marked the peak of the cryptocurrency’s market cycles.

Despite recent price fluctuations, Bitcoin’s current valuation remains within a healthy range, showing no signs of the overvaluation typically observed at the peaks of previous cycles. As of the latest data, Bitcoin’s price has recently hovered around $91,000, dipping from a record $99,655.50 reached in mid-November. This recent drop has led to predictions of a possible 30% correction before Bitcoin can break through the key $100,000 resistance level.

New Investors Lagging Behind Previous Cycles

One of the key indicators of a continuing bull market, according to CryptoQuant, is the holdings of new Bitcoin investors. In the current cycle, the value held by new investors is still significantly lower than in previous bull markets, such as in 2017 and 2021. Currently, new investors hold just 50% of the total Bitcoin supply, compared to over 90% in 2017 and 80% in 2021. This suggests that the market has yet to reach the typical conditions of an overheated bull market, where retail investors flood into the market in a speculative frenzy.

This divergence in investor activity is reflected in recent retail and institutional trends. Since October, retail investors have reduced their Bitcoin holdings by 41,000 BTC, while larger investors—including institutional players—have significantly increased their positions, adding 130,000 BTC to their portfolios. This shift in investor dynamics signals a move towards a more institutional-driven accumulation phase.

Institutional Inflows Surge

The report highlights the role of institutional investors, particularly those in exchange-traded funds (ETFs), in driving Bitcoin’s recent price growth. ETF inflows reached a record $3.1 billion in the week ending November 22, coinciding with Bitcoin’s price reaching new highs. These inflows indicate strong institutional demand, with large-scale players continuing to buy into the cryptocurrency despite some market turbulence.

Bull Market Cycle Still in Play

CryptoQuant’s Bull-Bear Market Cycle Indicator has been in the “bull” zone since early November, and analysts believe that Bitcoin is still in the early stages of its bull run. The indicator, while rising steadily, has yet to reach the overbought levels seen earlier this year when Bitcoin briefly surpassed $70,000 in March 2024.

This suggests that Bitcoin still has room to grow, with some analysts forecasting that the cryptocurrency will eventually push towards the $146,000 price target. Historically, this price range has marked the upper limit during previous bull runs, such as in April-May 2021, and analysts are optimistic that Bitcoin’s price could reach similar levels in this cycle.

What Lies Ahead for Bitcoin?

While there are still risks of short-term corrections, the broader outlook for Bitcoin remains bullish. The lack of retail frenzy, coupled with increased institutional involvement, suggests a more sustainable and mature market cycle. CryptoQuant’s P&L Index, a key measure of market sentiment, has not yet shown signs of overvaluation, further supporting the view that the market has room to grow before hitting a peak.

As Bitcoin continues to attract institutional investment and maintain strong fundamentals, the cryptocurrency could be poised for a significant surge in the coming months, potentially reaching new all-time highs beyond the $100,000 mark.