We can’t stop it anymore! Bitcoin continues to make history by reaching a new capitalization ATH at $1.84 trillion. This milestone marks a key moment for this digital asset, which is increasingly establishing itself as a major player on the global financial scene.
This meteoric rise, driven by institutional demand and growing adoption, reminds us that Bitcoin is much more than just a cryptocurrency. It is an economic and social phenomenon in full evolution!
However, in a bull run, it is important to keep a cool head. The movements will not always be linear: occasional corrections and consolidations will punctuate this journey, as has always been the case during bullish cycles. Let’s remember that patience and perspective are the keys to taking advantage of this trend.
Let’s look at how current signals and on-chain data seem to suggest that the journey is only just beginning.
A major milestone: $90,000 reached, what next?
Bitcoin recently crossed the symbolic threshold of 90,000 $marking an impressive progression of $67,000 to $93,000 in just nine days. This performance, historic in its speed, illustrates the incredible current market dynamics.
Imagine such a robust asset capable of posting an incredible +39% in such a short time! This is the case of our dear BTC.
What are the next steps?
According to the MVRV Pricing Bandsthe next level to monitor is around 97,000$a threshold adjusted according to investors’ profit taking. Further on, the red band; ultimate signal of overheating from past bullish cycles suggests a potential top at 127,000$.
These levels are not just arbitrary numbers. They represent crucial stages where the market self-regulates, balancing supply and demand. Currently, this demand is fueled by ETFs, individuals and massive capital injections recently.
Robust demand
The indicator Realized Capwhich measures the revaluation of BTC in circulation, shows an increase of 10% since the beginning of October. This indicates that profits are being made, but that demand remains largely dominant, absorbing sales without difficulty.
Also, the ETF Bitcoin continue to play an important role in this rally. Since October, they have attracted nearly $10 billion in fresh capitala record figure which reflects the growing interest of institutions. Additionally, spot trading volume reached a new ATH this week, with daily activity increasing from 9 billion to 13 billion dollars.
This data reinforces the idea that Bitcoin is evolving in a healthy environment, supported by increased demand and institutional adoption, far from the excess of being driven by levers.
Long-term holderse
Since Bitcoin broke its previous March ATH at 73,000$THE Long-Term Holders (LTH) started selling again.
Since this break, a little more than 200,000 BTC were distributed, and this figure reached 690,000 BTC since demand resumed in early October.
However, these sales still remain measured compared to last March, where 1,550,000 BTC had been liquidated, undermining the supply/demand ratio, which required 8 months of consolidation to recover.
Who are these LTHs selling?
- Mainly investors who accumulated their BTC during the summer (LTH from 6 months to 1 year), looking to make quick gains.
- The real ones HODLersthose who have held their BTC for several years, appear to be holding on to their positions, waiting for higher prices before selling.
For now, current volumes do not indicate anything to worry about based on the history we have of their behavior.
This suggests that the market still has room to reach a potential peak!
Corrections and opportunities
Despite this beginning of ambient enthusiasm, it is important to remember that corrections are normal in a bull run. In previous cycles, Bitcoin experienced several significant declines in 20 to 30%who never questioned the overall upward trend.
These phases serve to reset the market and prepare for the next bullish leg.
Things to watch out for
- The MVRVcurrently at a ratio of 2,6reached levels similar to those observed during consolidations or local tops of past cycles.
- Profit taking amounts to 2.5 billion dollars per daya significant figure but still far from historic peaks.
These elements are not alarming signals, but rather indicators to watch carefully to anticipate future movements.
The journey has only just begun. Bull markets work because demand exceeds supply. As long as the momentum remains oriented towards strong demand and limited supply, the market can continue to rise.
Bitcoin is entering an exciting but challenging phase. Price discovery beyond 90,000$ opens the way to levels yet unexplored, but it is accompanied by increased volatility.
The next steps promise to be just as exciting. However, it is crucial to keep a cool head and not give in to emotion in the face of the corrections that will punctuate this journey.
The next steps promise to be just as exciting. However, it is crucial to keep a cool head and not give in to emotion in the face of the corrections that will punctuate this journey.
Besides, for the anecdote, Bitcoin has surpassed Silver in terms of market capitalization, dethroning one of the oldest monetary assets in history!
As always with him, This is not the end of the journey, but only the beginning of a new chapter!
