Bitcoin prices have been strongly protruding for the last few weeks to recover from $ 74,000 to $ 100,000. Interestingly, the latest on -chain data suggests that premier cryptocurrency can be ready to recover the highest price ever and start fresh bulls.
Bitcoin price that follows gold footsteps
Chain analyst IBRAHIM COSAR from the Quicktake Post of the Cryptoquant platform has announced data -based insights on the potential trajectory of the Bitcoin price for the next few months. The relevant metrics here are the difference in growth rate (market capitalization CAP) that examines the difference in growth rate between the market cap and realization capitalization.
According to COSAR, the growth rate difference helps to evaluate investor behavior (too pessimistic or optimistic) and other market cycles. This indicator also helps to identify the correlation between actual value growth and price growth while evaluating the sustainability of the price trend.
Source: CryptoQuant
As you can see in the chart above, the positive area (marked green) generally signals optimistic market conditions. The market cap is growing faster than the realized CAP, and it suggests that more investors are entering the market and taking a new position.
As more investors offset their assets, the negative (red) areas are related to the weak market situation and major price modifications. As prices fall and losses increase, investors’ trust in the market begins to fall.
The emphasized charts have shown that Bitcoin prices have changed from red (bear market) to green (bull market) in recent days. COSAR believes that this change means a potential parabolic increase in BTC prices, as the change can be seen at gold prices over the last few months.
Bull cycle may still be on: Cryptoquant CEO
Two months ago, KI YOUNG JU, the founder of crypto pots, assumed that the price of the BTC reached its highest point and the bull is over. But in recent weeks, the chain analysis expert, which has followed Bitcoin Price’s impressive performance, has returned to the declaration.
According to JU, the bitcoin market is relatively diverse and seems to be moving away from traditional cycle theory. The encryption CEO suggests the past cycles controlled by previous whales, miners and new retail investors, and the current major companies are published by ETF (Exchange Traded Funds).
But JU noted that the most recent price measures are extremely optimistic, but the bitcoin market is still slow, absorbing new liquidity. Therefore, the founder of Crypto immediately waited for a clear signal before taking a new market position.
At the time of this article, flagship cryptocurrency does not reflect big movements over the last 24 hours and is worth more than $ 103,000.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock’s main image, TradingView chart
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