IBCI Signals Strong Momentum: Bitcoin’s Bull Market Isn’t Done Yet
As a price indicator for Bitcoin with a ten-year history remains optimistic, the cryptocurrency is poised for another upswing. According to recent data from the on-chain analytics platform CryptoQuant, the Index Bitcoin Cycle Indicators (IBCI) tool predicts that the bull market will continue to rise.
The most recent IBCI measurements seem to support the notion that Bitcoin’s current bull run is far from over. IBCI stays considerably below the zone, which typically corresponds to bull market peaks, despite combining a number of traditional on-chain indicators, such as the Puell Multiple and Market Value to Realized Value (MVRV).
The recent update of the Index Bitcoin Cycle Indicators (IBCI) shows a market at a point of definition,
CryptoQuant contributor Gaah
Bitcoin in a Transitional Phase: Is the Next Rally About to Begin?
According to Gaah, the data indicates that the bull market, which started in early 2023, will continue.
After the strong upward movement between the end of 2023 and the first quarter of 2024 – when the IBCI reached the distribution region (above 75%) – the indicator went through a correction following the fall in the price of BTC. Currently, IBCI has stabilized in the 50% range, indicating a neutral point in the market cycle.
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The IBCI has been at 50% since October, when the price of BTC/USD exploded over the previous record high of $73,800. Investor conduct has significantly calmed down, in contrast to the wild profit-taking atmosphere that characterized the event and the remainder of the year. This change in sentiment may pave the way for greater heights, according to Gaah.
Historically, equilibrium zones like this occur between two decisive phases: the end of a realization movement and the start of a new upward leg. The absence of extreme euphoria and the gradual recovery of the Bitcoin price suggest that the market is in a transitional phase – not exhaustion.
Gaah
No Red Flags Yet: Bitcoin Still Has Room to Run, Says On-Chain Data
A growing number of market indicators suggest that Bitcoin will eventually return to price discovery, as evidenced by recent publications. Despite the fact that the price of Bitcoin has risen to $112,000, none of the 30 bull market peak criteria on the list have flashed red. However, in a different Puell Multiple investigation conducted recently, Gaah pointed out an odd discrepancy between miner revenues and price.
Historically, when Puell Multiple is below 1.0 we associate periods of accumulation or undervaluation, where the price of Bitcoin does not yet reflect the full potential for long-term growth.
Seeing this indicator at such low levels during a new all-time high is rare – and may indicate that the market has not yet reached its full euphoric phase. There is room for expansion, both in mining revenues and in positive market sentiment.
Gaah
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