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U.Today - In the last 30 days, Bitcoin (BTC) has failed to retest the $100,000 psychological level as bearish consolidation suppresses price breakout. The coin’s highest price before suffering a correction within this period was $94,500.
This development has sparked concerns about whether the leading digital asset has entered the ‘overheated zone.’
Bitcoin market cycle still has room to grow
Notably, CryptoQuant, a leading on-chain aggregator, argues otherwise. In an update shared with the crypto community, CryptoQuant noted that it is at a critical point in its market cycle, as revealed by the Bitcoin Combined Market Index (BCMI).This metric blends investor sentiment, valuation, and profitability indicators. Based on the current BCMI chart, BTC is still below 0.5 and not ‘yet in the overheated zone of 0.75.’
For clarity, the overheated zone is when the market signals that Bitcoin’s price may be overextended and a correction is looming. This usually leads to investors’ pullback, triggering a price crash.
According to CryptoQuant, Bitcoin’s BCMI, currently at 0.5, suggests that the market might still have room to grow before it peaks. This implies that despite the seeming stagnation in BTC’s price, the asset could see a breakout anytime now.
Despite many industry leaders like Samson Mow backing this projection, the timeline for massive breakout is still years away. With CryptoQuant pegging the Fear & Greed Index at 20, the coin may need a more visible catalyst to drive its breakout.
Bitcoin key price levels to watch
Amid the push for a rebound, key price levels above $89,000 could trigger selling pressure. Per IntoTheBlock data, over 5 million addresses entered the market at this price range and might want to exit without a loss.However, if the market can overcome this pressure, it could spark a renewed push towards a new all-time high (ATH). Meanwhile, Bitcoin’s price could witness strong corrections if the current support at $84,000 to $86,000 fails to hold.
As of this writing, Bitcoin traded at a 1.38% loss to $86,946, according to CoinMarketCap data.