Bitcoin Bull Market Persists: CryptoQuant Research Emphasizes Halving’s Impact

• Despite recent dips, research from CryptoQuant indicates the Bitcoin bull cycle continues, with key indicators still showing potential for growth.
• The upcoming Bitcoin halving event is anticipated to significantly boost BTC’s value, historically triggering market bull runs.

In the last two days, Bitcoin witnessed a 13% drop from its peak value, briefly touching near $60,000. Experts characterize this reduction as a “pre-halving retrace,” which is emerging just before the expected Bitcoin halving event, slated to occur in about a month.

Despite this temporary downturn, CryptoQuant’s analysis suggests that the Bitcoin bull market has not yet concluded. Key factors, such as the influx of capital from new investors and several price valuation indicators, have not reached the heightened levels observed during past market peaks.

This recent development is in harmony with patterns highlighted in previous CNF reports, embodying the Bitcoin Phenomenon, where a market surge is often succeeded by a shakeout. The continual fluctuation underscores the dynamic nature of the cryptocurrency market, particularly in phases leading up to significant events like the halving.

A recent CNF YouTube video analysis highlights that short-term holders currently account for 48% of Bitcoin’s total investment. This percentage is significantly lower than the 84%-92% commonly observed at the culmination of past bull cycles. Furthermore, valuation metrics, such as CryptoQuant’s Profit and Loss (PnL) Index, are not yet within the typical market peak range.

The PnL Index, an aggregate of three key on-chain indicators, is presently slightly below the peaks of the 2013, 2017, and 2021 bull markets. Moreover, the impending Bitcoin halving event, which is expected to significantly elevate BTC prices, is drawing closer. During this event, the reward for Bitcoin miners will be halved from 6.25 BTC to 3.125 BTC, an occurrence historically associated with initiating a bull market in Bitcoin.

Standard Chartered Bank’s latest projections further reinforce this optimistic perspective, forecasting that BTC’s price might climb to $150,000 by the end of 2024, a rise from their prior estimate of $100,000. They also predict a peak of $250,000 in 2025 before a stabilization around $200,000. These predictions are partly influenced by the performance of spot Bitcoin ETFs and the unique market dynamics introduced in this halving cycle.

Additionally, CryptoQuant’s “Weekly Crypto Report” shows that 48% of Bitcoin investment comes from short-term holders. Typically, a bull cycle ends when 84%-92% of investment stems from these new investors. CryptoQuant analysts assert, “The Bitcoin bull cycle is far from concluding, as evidenced by the relatively modest level of new investment flows.”

Moreover, the report includes a chart detailing the Bitcoin realized cap and OTXO age bands percentage. This chart demonstrates that this metric has reached levels akin to mid-2019 (52%), when Bitcoin also underwent a significant correction – a key factor for short-term traders to consider.

As of this writing, BTC has surged 6.17% in the last day, with a current price of approximately $67,002.