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bitcoin price continued its red-hot form over the past week, recording successive all-time highs in less than five days. While Donald Trump's success in the US election might have fueled the recent rally, the growth of the leading cryptocurrency (and the crypto market in general) appears to have developed a life of its own.
Interestingly, the market has been wondering where the next market top will be, and some experts and commentators believe that the btc price rally has come to an end. However, a prominent on-chain analytics company came forward and said that bitcoin price still has room for some bullish movement.
Four Reasons Why $100,000 Is Possible for bitcoin Price: CryptoQuant
In its latest weekly report, CryptoQuant <a target="_blank" href="https://cryptoquant.com/community/dashboard/6735acd8e68abb003e57907e?utm_source=telegram&utm_medium=sns&utm_campaign=dashboard&utm_content=crypto-weekly-report” target=”_blank” rel=”nofollow”>revealed that bitcoin, the world's largest cryptocurrency by market cap, is not yet overvalued despite its recent positive momentum. According to the blockchain platform, the market leader could soon reach the coveted $100,000 price level.
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The rationale behind this projection is based on valuable metrics such as the MVRV (market value/realized value) ratio. As the name suggests, this indicator measures the relationship between the market value and the realized value of a cryptocurrency. As such, the MVRV helps evaluate the highs and lows of the bitcoin market.
CryptoQuant noted that bitcoin is not yet overvalued at current price levels as the MVRV metric is still outside the overvalued region. Ultimately, this means that the bullish price action is not overheated and that bitcoin price could still attempt to reach higher prices.
What's more, the maximum band Trader On-chain Realized points to $100,000 as the next target for bitcoin price. According to CryptoQuant, the last time the maximum band reached its current level was in March 2024, when the leading cryptocurrency surpassed the $70,000 level for the first time.
Another on-chain observation supporting the continued bitcoin price rally is the growth in demand. CryptoQuant highlighted that investor demand in the United States has returned since the presidential election, with Coinbase Premium remaining positive in recent days.
Finally, cryptocurrency market liquidity has continued to increase in recent weeks, as stablecoins hit exchanges. For context, more than $3.2 billion worth of USDT has entered exchanges since the US election, indicating the potential for a sustained bitcoin price rally.
Tread carefully
However, CryptoQuant issued a warning in its report, saying that some selling action could follow the recent price rally. While some bitcoin miners have started dumping their assets to make a profit, the blockchain company also noted that bitcoin sales seen so far remain negligible but could rise rapidly soon.
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At the time of writing, the price of bitcoin is around $91,270, reflecting a 4% increase in the last 24 hours. According to CoinGecko, the flagship cryptocurrency rose more than 19% last week.
Featured image from iStock, chart from TradingView
