According to a report by CryptoQuant, a blockchain data analysis company, the Bitcoin bull market cycle is not yet over, considering the relatively low investment flow from new investors and the valuation indicators still being lower than the levels seen during previous market peaks.
Data from CryptoQuant’s weekly cryptocurrency report shows that currently, 48% of Bitcoin investments come from short-term holders. Analysts state that during the end of a bull market cycle, usually 84% to 92% of investments come from these new investors. The CryptoQuant report states:
Bitcoin Realized Market Cap – UTXO (Unspent Transaction Output) Age Bands Percentage, Source: CryptoQuant
The chart also shows that this indicator has reached a level similar to mid-2019 (52%), when Bitcoin also experienced a significant correction. Short-term traders should take note of this.
The CryptoQuant report also indicates that the Bitcoin valuation indicator is still lower than the levels seen during previous market tops. The report states:
CryptoQuant Profit and Loss Index
The CryptoQuant Profit and Loss Index consists of three on-chain indicators, showcasing the profitability of Bitcoin. This index previously indicated that the cryptocurrency market would enter a bull cycle in 2024. However, the current level is slightly lower than the levels observed during market peaks in 2013, 2017, and 2021.
