Bitcoin’s price performance in 2024 is one for the history books, and the first cryptocurrency exceeded the $100,000 mark for the first time. However, hitting this milestone opened the door to another discussion – when will the market top out?
As a result, several predictions for the high price of Bitcoin have appeared in the crypto crowd in the past few weeks. Recent on-chain observations suggest that the market may not have peaked or may not be nearing a peak yet.
Profit Ratio Earned is Significantly Lower Compared to Previous Cycles
In a recent Quicktake for the CryptoQuant platform, an analyst with the pseudonym CryptoOnChain explained how whale behavior and movements can help pinpoint the upside of the Bitcoin market. The relevant metric here is the leverage ratio, which measures the rate at which a group of investors outperforms the market.
The “profit made ratio” metric calculates the proportion of coins sold at a profit compared to the total amount of trading capital. A high value of this metric indicates that the market is about to reach a peak, participants start to load their assets for profit.
A low profit margin ratio, on the other hand, indicates that few market participants are selling their portfolios for profit. This often shows the confidence and faith of investors in the continued price growth of the cryptocurrency.
According to CryptoOnChain, the average profit observed for various groups of Bitcoin whales (holding between 10 to 100, 100 to 1,000, and 1,000 to 10,000 BTC) is significantly lower compared to the last cycles. As noted in the chart below, it appears that the whales are yet to start taking advantage.
Source: CryptoQuant
This suggests that Bitcoin whales, which are influential market entities, believe that the first cryptocurrency is yet to reach the highest value in the cycle. As of this writing, the price of Bitcoin sits just below $102,000, showing no significant change in the past 24 hours.
40,000 BTC Released on Central Exchange: CryptoQuant
Another data point seems to support the view that market participants are currently expecting higher returns. Prominent crypto expert Ali Martinez took to the X site to share that significant Bitcoin prices have been coming out of central exchanges for the past few days.
Source: Ali_charts/X
More than 40,000 BTC (worth about $3.92 billion) were sent off-exchange last week. This movement of assets into non-custodial wallets reflects the growing confidence among investors, with a focus on the long-term promise rather than immediate short-term gains.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
Source link