Bitcoin’s price action in 2024 has captured the attention of both investors and analysts alike. In March, Bitcoin achieved a new all-time high, but since then, it has been on a consistent decline. This trend has sparked widespread speculation about whether this marked the final peak of the bull market.
While many believed that the March peak signaled the market’s top, recent analyses suggest otherwise. According to experts, this peak may have only been an “interim top,” indicating that the market cycle is far from complete.
Is Bitcoin Set For Another Surge?
A prominent CryptoQuant analyst named Sachi has provided valuable insights into Bitcoin’s market behavior, specifically addressing the March peak. Based on on-chain data, Sachi argues that the market is still distant from its ultimate peak. The analysis underscores the significance of long-term holder activity and the Binary Coin Days Destroyed (CDD) indicator in evaluating market maturity.
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Sachi’s findings reveal that although some long-term holders took profits in March, the data suggests that this peak might not represent the final top of the market cycle. Instead, Bitcoin might be in a “cooling-off” phase, with the potential for another upward movement in the near future.
The Binary CDD, which monitors the activity of long-term Bitcoin holders, provides further clarity. Historically, when Bitcoin reached its final market top in previous bull cycles, the Binary CDD indicator hit the red zone, signaling substantial selling pressure from long-term holders. However, the recent all-time high in March did not push the Binary CDD into this critical zone, indicating that the market has not yet reached its final stage.
Further supporting this idea, CryptoQuant’s analysis shows a significant decrease in selling pressure from long-term holders since March. This decrease implies that the market is not yet mature. Sachi suggests that while the March peak may have caused a temporary slowdown, it does not mark the end of the bull cycle. Instead, Bitcoin appears to be in a consolidation phase, where both price and time adjust before the next upward move.
According to Sachi:
“Once this phase concludes, another upward movement could follow. Before we reach the final top, we will likely see renewed activity from long-term holders, with Binary CDD reaching the red zone, signaling the next round of price adjustments.”
Bitcoin’s Current Market Performance
As of now, Bitcoin has continued to consolidate just below the psychological $60,000 price level. Although the asset has recently attempted to breach this mark, it has so far been unsuccessful, leading to further price declines.
Currently, Bitcoin is down by 5.7% over the past week. However, its price performance over the past day has shown a slight recovery, with a 1.5% increase, bringing the current trading price to $57,171 at the time of writing.
BTC price is moving sideways on the 2-hour chart, indicating a period of consolidation. As the market continues to adjust, investors and analysts are keeping a close watch on key indicators and long-term holder activities to anticipate the next significant move.
In conclusion, while the March peak might have been an interim top, the data suggests that Bitcoin’s bull cycle is not yet over. As the market matures and consolidates, another surge could be on the horizon, driven by renewed activity from long-term holders.
