Bitcoin (BTC) has experienced a significant drop in price over the past 48 hours, falling 13% from its recent all-time high of $73,835 to briefly trade near $60,000. Analysts attribute this correction to overheated market conditions ahead of the upcoming Bitcoin halving event, which is approximately 30 days away.
However, a report by CryptoQuant suggests that the Bitcoin bull cycle is not yet over. The report reveals that the majority of Bitcoin investment, 48%, is coming from short-term holders. In previous bull cycles, this percentage typically reaches 84%-92%. Additionally, valuation metrics are still below levels seen in past market tops.
The chart provided by CryptoQuant indicates that this metric has reached levels similar to mid-2019, when Bitcoin experienced a significant correction. This is something that short-term traders should be cautious of.
Another metric, the CryptoQuant profit and loss (PnL) index, also suggests that the Bitcoin market is still in a bullish phase. The index, which is composed of three on-chain indicators, has previously predicted a bull cycle in 2024. However, the current level is slightly below those observed during the 2013, 2017, and 2021 bull runs.
In addition to these metrics, the upcoming Bitcoin halving event is expected to have a positive impact on BTC price. According to CoinMarketCap’s halving countdown, the event is less than 31 days away. With approximately 4,450 blocks remaining, the halving will occur on April 20, reducing miner block rewards by 50%.
Historically, Bitcoin’s halving has been followed by a significant increase in price, leading to a bull run. Standard Chartered Bank has even raised its forecast for BTC price from $100,000 to $150,000 in 2024. The bank predicts that BTC’s price will reach $250,000 in 2025 before settling at around $200,000.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.