Bitcoin bull market ‘confirmed’ but $90K presents profit-taking risk: Analysis
BTC price analysis concluded that onchain signals had “confirmed” the new Bitcoin bull market.
Bitcoin's bull market has been "confirmed" by onchain signals, according to a recent analysis. However, the price is now facing a "next real test" at $90,000, as traders continue to return to unrealized profits. CryptoQuant, an onchain analytics platform, has warned that the area around $90,000 could see increased profit-taking if Bitcoin reaches this level.
The current realized price of BTC stands at $64,300, with an upper band of $90,300, representing a 40% increase from the realized price. This upper band is seen as the "next resistance to clear," as trader profit margins stretch and selling can intensify as price approaches it. CryptoQuant analysts note that while the path between the current spot price of $86,000 and the profit-taking zone is largely clear, there is no indication of a return to bear-market conditions.
The report echoes the view of CryptoQuant CEO Ki Young Ju, who believes Bitcoin's price cycles are becoming less extreme due to a shift from retail to institutional BTC ownership. This shift is dampening both the upside and downside potential. Additionally, Bitcoin's market value to realized value (MVRV) ratio has crossed above its 365-day moving average, signaling the end of both the 2018 and 2022 bear markets.
New capital inflows to Bitcoin remain notably high, with US spot Bitcoin ETFs seeing net inflows of $1.7 billion in the first two days of the week.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
