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bitcoin has continued its strong bullish momentum, trading at never-before-seen highs. Today, the asset has reached a new all-time high of approximately $93,477. This ATH was achieved not long ago after a previous drop today to $85,000.
However, at the time of writing, btc has seen a slight pullback, now down 0.5% from its high to currently trade at $92,544, although still up 5.6% on the last day.
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Is bitcoin finally at its peak?
Amid btc's price surge, market analysts have offered their perspectives on bitcoin's potential trajectory. Crazzyblockk, CryptoQuant analyst, <a target="_blank" href="https://cryptoquant.com/insights/quicktake/6734ae9702ec73517f05b8a4-Is-bitcoin-at-Its-Price-Peak-Evaluating-Investor-Profitability-to-Find-Out” target=”_blank” rel=”nofollow”>addressed questions about whether bitcoin has peaked when evaluating market profitability indicators.
According to Crazzyblockk, two key metrics are essential for evaluating bitcoin profitability: the number of bitcoin addresses currently in profit and the overall profitability rate of these addresses. The analyst noted that almost all bitcoin addresses are profitable, indicating higher market risk.
However, he also noted that current profit margins across different holding periods remain lower than those seen during previous bull markets, such as the 2019-2020 and 2021 bull trends, where profit margins reached 800-900%. .
Despite concerns about possible short-term price corrections due to elevated market risks, Crazzyblockk expressed confidence in bitcoin's long-term upward trajectory.
He emphasized that strategies such as dollar-cost averaging (DCA) and maintaining a long-term investment approach could benefit capital growth in this environment.
More margin for profit?
in a separate analysisCryptoQuant analyst Avocado Onchain highlighted the mining activity and its implications for bitcoin price movement. Avocado noted that some bitcoin miners have already started making profits, but this does not necessarily indicate a weakening of bitcoin's overall bullish potential.
He pointed to the Mining Position Index (MPI), which tracks bitcoin outflows from miners' wallets relative to the annual average. A high IPM suggests increased miner selling activity, which may indicate that the price of bitcoin may be approaching a cycle peak.
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So far, recent data showed a slight increase in IPM as bitcoin hit new all-time highs. Avocado explained that this could represent early positioning for the next market cycle. By converting the MPI into a 30-day moving average, clearer signals regarding market cycles emerge.
The analyst identified profit-taking patterns by miners near cycle highs, often followed by subsequent price increases and eventually longer-term bearish trends. Avocado Onchain also highlighted additional data supporting the potential for further bitcoin price growth.
Hash rate and mining difficulty, key indicators of mining activity and network security, have reached new highs, reflecting strong miner participation and the overall health of the network.
This data, combined with continued market interest and increasing liquidity, suggests that bitcoin price could see further upside this cycle, as Avocado's analysis suggests.
Featured image created with DALL-E, TradingView chart
