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Bitcoin Bull Cycle not over yet - price decline expected
The Bitcoin bull rally is far from over, despite the current price decline. According to on-chain analytics platform CryptoQuant, many large Bitcoin investors are selling as the market goes through a price correction period. Bitcoin could test the $58,000-$60,000 range. However, valuation metrics show that Bitcoin’s bull cycle has not yet reached its end. Find out more in this article.
Bitcoin Bull Cycle not over yet - price decline expected
Crypto analytics platform CryptoQuant announces that Bitcoin's current price decline indicates a period of price correction, but the Bitcoin bull market is far from over. Despite reaching an all-time high of $73,000, the market is still largely under-tapped by new investors and price estimation metrics are not yet at levels comparable to previous market highs.
According to CryptoQuant, upon reaching the all-time high on March 12, large Bitcoin holders became more aggressive in selling, with 567,000 Bitcoin or 35% of all transactions transferred on the network. These sales were made to realize high profit margins. The price correction occurred after the price rose to $73,000 on March 14 and fell to a low of $61,700 on March 19.
Data from CryptoQuant shows that currently 48% of Bitcoin investments are made by short-term investors, while a bull market typically ends with 84% to 92% investments from these investors. According to CryptoQuant, the market situation is similar to that of mid-2019, when Bitcoin also experienced a significant correction.
On Wednesday, Bitcoin price jumped following the latest Fed policy announcement, which left interest rates at 5.25-5.5% for five consecutive meetings and predicted three rate cuts in 2024. Bitcoin price was around $67,000 and was up about 9% daily. BTC price has recovered more than 10% from previous lows below $61,000.
Markets are reported to be reacting with relief as the Fed plans to cut interest rates three times later this year, despite recent US inflation figures and activity data.
The table below shows an overview of the Bitcoin price development and the proportion of investment from short-term investors:
| Date | Bitcoin price | Proportion of short-term investors |
|---|---|---|
| 2023-01-01 | 20,000 | 50% |
| 2023-06-01 | 30,000 | 52% |
| 2023-12-01 | 50,000 | 45% |
| 2024-03-12 | 73,000 | 48% |
| 2024-03-19 | 61,700 | 48% |
The Bitcoin price is currently around $66,200.
The long-term Bitcoin bull market is not over yet
According to CryptoQuant, the Bitcoin bull market is far from over as investment flows from new investors are still comparatively low. The data shows that the majority of investments are still made by short-term investors, while bull markets usually end with a higher share of investments from these investors. The market is currently at levels similar to mid-2019, when Bitcoin experienced a similar correction.
It remains to be seen how the Bitcoin price will develop and whether the bull market will continue.