Bitcoin has surged to unprecedented heights, achieving a new all-time high of approximately $93,477 today. This milestone follows a recent dip that saw Bitcoin drop to $85,000 earlier in the day.
However, as of this writing, Bitcoin has experienced a slight pullback, declining 0.5% from its peak to currently trade at $92,544, which still represents a 5.6% increase over the past 24 hours.
Amid this price surge, market analysts have been weighing in on Bitcoin’s potential trajectory. CryptoQuant analyst Crazzyblockk has been evaluating market profitability indicators to address questions about whether Bitcoin has reached its peak. According to Crazzyblockk, two key metrics are crucial for assessing Bitcoin’s profitability: the number of Bitcoin addresses currently in profit and the overall profitability rate for these addresses. He noted that almost all Bitcoin addresses are profitable, indicating heightened market risk.
Nevertheless, he also pointed out that current profit margins across different holding periods are still below those seen during previous bull markets, such as those in 2019-2020 and 2021, when profit margins soared to 800-900%. Despite concerns about potential short-term price corrections due to elevated market risks, Crazzyblockk expressed confidence in Bitcoin’s long-term upward trajectory. He suggested that strategies such as Dollar-Cost Averaging (DCA) and maintaining a long-term investment approach could foster capital growth in this environment.
Meanwhile, in a separate analysis, CryptoQuant analyst Avocado Onchain explored miner activity and its implications for Bitcoin’s price movement. Avocado noted that some Bitcoin miners have already begun taking profits, but he stressed that this does not necessarily signal a weakening of Bitcoin’s overall upward potential. He highlighted the Miner Position Index (MPI), which tracks Bitcoin outflows from miners’ wallets relative to the annual average. A high MPI suggests increased miner selling activity, indicating that Bitcoin’s price may be nearing a cycle peak.
Recent data has indeed shown a slight increase in MPI as Bitcoin hit new all-time highs. Avocado explained that this could represent early positioning for the next market cycle. By converting MPI to a 30-day moving average, clearer signals emerge regarding market cycles. He identified patterns of profit-taking by miners near cycle tops, which are often followed by subsequent price increases and longer-term downtrends.
Avocado Onchain also emphasized additional data supporting the potential for further Bitcoin price growth. The hashrate and mining difficulty, key indicators of mining activity and network security, have reached new highs, reflecting robust miner participation and overall network health. This data, combined with continued market interest and growing liquidity, suggests that Bitcoin’s price could experience further upside in this cycle, according to Avocado’s analysis.
