Bitcoin price continued its red-hot form this past week, hitting consecutive all-time highs in less than five days. While Donald Trump’s success in the US elections may have boosted the recent rally, the growth of the leading cryptocurrency – and the crypto market overall – appears to have taken on a life of its own.
Interestingly, the market is wondering where the next market top will be, with some experts and commentators believing that the BTC price the rally is over. However, a leading on-chain analytics firm has suggested that the Bitcoin price still has room for some upside movement.
Four Reasons Why $100,000 is Possible for Bitcoin Price: CryptoQuant
In its latest weekly report, CryptoQuant revealed that Bitcoin, the world’s largest cryptocurrency by market capitalization, is still not overvalued despite its recent positive momentum. According to the blockchain platform, the market leader could soon reach the coveted price level of $100,000.
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The rationale behind this projection is based on valuable metrics such as the MVRV ratio (market value versus realized value). As the name suggests, this indicator measures the ratio between the market value and the realized value of a cryptocurrency. As such, the MVRV helps assess the tops and bottoms 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 area. This ultimately means that the bullish price action does not overheat and the Bitcoin price can still play for higher prices.
Furthermore, the Trader On-chain Realized max band 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 breached the $70,000 level for the first time.
Another on-chain observation that supports the ongoing 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, liquidity in the crypto market has continued to increase in recent weeks as stablecoins enter the exchanges. For context, more than $3.2 billion in USDT has flowed into exchanges since the US election, pointing to the potential of a continued Bitcoin price rally.
Be careful
However, CryptoQuant sounded a note of caution in its report and said that some kind of sales promotion could follow the recent price increase. Although some Bitcoin miners have started offloading their assets to make a profit, the blockchain company also noted that Bitcoin sales are still insignificant so far, but could quickly rise rapidly.
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At the time of writing, the Bitcoin price is around $91,270, reflecting a 4% increase in the last 24 hours. According to CoinGecko, the flagship cryptocurrency is up more than 19% in the past week.
Featured image from iStock, chart from TradingView
