Bitcoin (BTC) has the potential to record more substantial price surges, according to a CryptoQuant analysis, despite recently hitting a new all-time high above $73,000.
A recent report from Axel, a CryptoQuant Research and Data Analyst, indicates that Bicoin could continue its upward trajectory, even after surpassing the $73,000 mark. Notably, BTC surged to a new ATH of $73,650 today after breaching $72,000 two days ago.
The leading crypto asset has faced a mild drop following the $73,650 high, but the CryptoQuant analysis suggests the uptrend is in its infancy. The analysis focuses on a metric known as the UTXO P/L Supply Ratio Momentum and its correlation with Bitcoin’s price movements.
History Repeats Itself
The UTXO P/L Supply Ratio Momentum looks at the average profit or loss that Bitcoin holders are experiencing over a week, and then compares it to the average profit or loss over a year. Essentially, it tracks the ratio of profits and losses realized by Bitcoin holders over time.
Citing data from the CryptoQuant chart, Axel pointed out that this metric has recorded two notable spikes since 2014. Interestingly, both of the spikes materialized during bull market phases, coming up after Bitcoin had witnessed its bottom price for the cycle.
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The chart displays bitcoin price dynamics and UTXO P/L Supply Ratio Momentum. This metric divides average weekly P/L ratio by the yearly average. In the past decade, two significant momentum spikes were observed, with a third emerging now. pic.twitter.com/fGt9n9Uaqa
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) March 13, 2024
When this momentum indicator spikes, it indicates that there has been a significant change in how profitable Bitcoin holders are, potentially signaling a shift in investor behavior from short-term profit-taking to long-term holding. During these phases.
Bitcoin Could Rally Further
Data from the chart suggests a correlation between sharp changes in the indicator and significant Bitcoin price movements. The report indicates that such spikes often align with periods of growth, indicating mid-bull rally stage. However, BTC typically faces a mild correction before the upsurge.
Speaking on the analysis, CryptoQuant Chief Ki Young Ju stressed that despite reaching new record highs, Bitcoin’s bullish momentum may still have room to run, potentially leading to further price appreciation in the near future.
On-chain momentum indicates enough fresh capital inflow to initiate the next #Bitcoin parabolic bull run. https://t.co/BrvWO1dbc4
— Ki Young Ju (@ki_young_ju) March 13, 2024
According to Ki Young Ju, the on-chain data suggests the imminent arrival of new capital to kickstart another round of price surges. Bernstein analysts hold similar sentiments, emphasizing that they are now “confident” Bitcoin could skyrocket to $150,000 by next year.
Meanwhile, Bitcoin currently trades for $72,794, up 1.18% over the past 24 hours. Trade volume has continued to clinch record highs, as the crypto asset sees increased interest triggered by the spot Bitcoin ETF products. BTC’s 24-hour trade volume currently sits at $62.5 billion.
