Cryptocurrency analytics firm CryptoQuant suggests that Bitcoin’s March 2024 all-time high is not the market’s final peak.
Based on on-chain data, analysts believe that the March peak could be an “initial peak” rather than the final peak of the current bull cycle.
According to analysts, a key metric supporting this assessment is Binary Coin Days Destroyed (CDD), which tracks the activity of long-term BTC holders. While there is a noticeable profit-taking by these investors around March 2024, Binary CDD has yet to reach the critical “red zone” that typically signals the end of a bull market. Historically, this level has been reached before the market has experienced its recent peak, indicating that there may still be room for further price appreciation.
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In addition, according to CryptoQuant, data suggests that activity from long-term holders is currently stagnant and selling pressure from these holders has significantly decreased. This lack of large-scale selling suggests that the market is immature and still far from the ultimate peak. The current period of consolidation following the March highs may be a temporary “cooling” phase.
Once this consolidation phase is over, CryptoQuant analysts predict that another upward price move could occur. They expect long-term holders to re-engage as Bitcoin approaches its eventual peak, with Binary CDD likely reaching the red zone, signaling the next major price adjustment.
*This is not investment advice.
Continue Reading: Was Bitcoin’s March Record “First Peak” or “Last Peak”? Here’s How Analysts Responded
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Author: NixCoin