As optimism that the spot Bitcoin ETF will be approved has increased in recent days, Bitcoin has also experienced a significant rally and surpassed $44,000.
With Bitcoin currently trading at $43,000, investors are wondering whether this rally will continue. At this point, investors received good news from CryptoQuant.
According to The Block, analysts stated that the rally in BTC will continue and argued that the Bitcoin price could exceed $ 50,000 in early 2024.
Analysts who used the Metcalfe price valuation band metric in this prediction stated that, according to their analysis, Bitcoin's target price range could be $ 50,000 to $ 53,000 at the beginning of 2024.
However, analysts added to their analysis that they expect a correction in the short term.
“We think the target price range on Bitcoin will be $50,000 to $53,000 in early 2024 from a network activity valuation perspective.
Also lit is the “Bitcoin bull-bear market cycle indicator,” which indicates that while the metrics point to the current bull market and its continuation, it is approaching an overheated bull phase, which has historically been consistent with price rally pauses or corrections.
So, there may be a correction in the short term.”
At this point, analysts said that 90% of Bitcoin's circulating supply is currently in profit, indicating a possible short-term correction.
“Given that 88% of Bitcoin's circulating supply is currently in-the-money and funding rates have risen significantly, we advise caution due to the possibility of a short-term correction, as the level of circulating supply in-the-money has never been this high,” CryptoQuant analysts wrote. said.
Bitcoin continues to trade at $43,289 at the time of writing.
*This is not investment advice.