Bitcoin Cycle Indicators Reach Distribution Zone

A study published by the on-chain analytics platform CryptoQuant highlights that the Bitcoin Cycle Indicators Index (IBCI) has reached the distribution zone for the first time in eight months. This could indicate that the Bitcoin bull market might be coming to an end.

The IBCI is a combination of seven popular indicators used to understand Bitcoin’s price cycles. These indicators include:

• Puell Multiple: Tracks mining revenue for Bitcoin.
• Spent Output Profit Ratio (SOPR): Shows realized profits and losses.
• Net Unrealized Profit/Loss (NUPL): Measures overall market sentiment.

Gaah, a CryptoQuant contributor, notes that not all these indicators have fully reached the historical distribution zone. However, their convergence suggests that the market may be nearing a peak.

Bitcoin Price Targets and Risks

The analysis shows that Bitcoin briefly entered the risk zone for peaks at the start of 2024, but this did not result in a bear market. In the long term, prices could potentially drop to the $90,000 range. However, in the short term, a new peak of $137,000 might still be on the table.

What Do Puell Multiple and Cycle Indicators Suggest?

The Puell Multiple remains below the critical threshold of “6,” indicating that the market hasn’t yet experienced a full peak. However, if the IBCI indicators reach 100%, a correction or a bear market may follow.

2025 Bitcoin Predictions: Could It Reach $1.5 Million?

Network economist Timothy Peterson suggests that Bitcoin could make a significant leap in the long run. According to him, BTC might hit $1.5 million by 2035. However, he also warns of potential price volatility along the way.

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The post Critical Warning for Bitcoin Price: Is the Bear Market Starting? appeared first on Coin Engineer.

Bitcoin surpassed $100,000 for the first time on December 6, marking a long-awaited milestone in crypto history. This historic peak occurred despite weak performance across other major assets. Over the past month, Bitcoin surged by 32%, while oil dropped 6.3%, the S&P 500 fell 1%, and gold declined 1%.

Bitcoin’s rally against other global assets signals promising prospects for Bitcoin investors, strengthening analysts’ expectations that the current bull market will continue until the end of 2025 — known in crypto trader slang as the “euphoria stage.”

Bitcoin to Continue Rallying Until 2025 in “Euphoria Stage”

Bitcoin has entered the euphoria stage based on the long-term holder net unrealized profit/loss (NUPL) metric. This could extend Bitcoin’s rally until the end of 2025, according to Quinten François, co-founder of WeRate, who posted on December 7:

“Bitcoin is entering the euphoria stage. You have a maximum of 12 months before the cycle top.”

The NUPL metric is used to measure whether the overall Bitcoin network is in profit or loss, based on the difference between unrealized profit and unrealized loss among BTC holders.

Bitcoin’s Surge Amid Liquidity Issues

Bitcoin reaching its all-time high is significant, especially considering the global liquidity backdrop. James Coutts, chief crypto analyst at Real Vision, stated in a December 6 post:

“Bitcoin has hit new ATHs in the face of a deteriorating liquidity backdrop. If conditions worsen, the rally, while euphoric, can only last for a limited time. If conditions ease from here, then a pullback is warranted, but then off we go again.”

A potential bottom in global M2 liquidity (a measure of cash and short-term bank deposits) suggests that Bitcoin could extend its rally in the short term before a potential correction.

Bitcoin Expected to Surpass $110,000 by January 2025

Raoul Pal, founder and CEO of Global Macro Investor, predicts that based on Bitcoin’s correlation with the liquidity index, the cryptocurrency could reach a “local top” above $110,000 by January 2025.

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The post Bitcoin Rally to Continue Until the End of 2025 appeared first on Coin Engineer.

The current NUPL level has been set at 0.503%. In the past, NUPL values at similar levels (between 0.50% and 0.55%) have been observed to signal profitable moves for investors. However, in light of this information, the main question is, in the current cycle, what could be the tendency of investors to take profit from these levels? Onchain data shows the bull is just getting started!

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For investors, evaluating this situation should involve an analytical approach to associating the NUPL level with past trends and foreseeing potential future trends. However, it is important to understand that due to the complexity and uncertainty of financial markets, there is no guarantee that any strategy will yield risk-free or definitive results.

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The post Onchain Data: The Bull Just Getting Started! appeared first on Coin Engineer.