Bitcoin’s price action in 2024 has drawn significant attention from both investors and analysts. In March, Bitcoin reached a new all-time high, and ever since, it has consistently declined. This has sparked speculation about whether this marked the final peak of the bull market.
While many believed the March peak was a sign of the market topping out, a recent analysis suggests that this may have only been an “interim top.”
Is Bitcoin Set For Another Surge?
A CryptoQuant analyst named Sachi shared insights about Bitcoin topping out in March, revealing that based on on-chain data, the market is still far from its ultimate peak.
The analysis highlights the importance of long-term holder activity and the use of the Binary Coin Days Destroyed (CDD) indicator to gauge market maturity.
According to Sachi, although some long-term holders took profits in March, the data indicates that this peak may not represent the final top of the market cycle. Instead, Bitcoin may be in a “cooling-off” phase, with another upward movement on the horizon.
The Binary CDD, which tracks the activity of long-term Bitcoin holders, sheds more light. When Bitcoin reached its final market top in previous bull cycles, Binary CDD hit the red zone (marked in the chart below), signaling significant selling pressure from long-term holders.
However, the recent all-time high in March did not push Binary CDD into this zone, suggesting that the market has not yet reached its final stage.
The CryptoQuant analysis also shows that selling pressure from long-term holders has significantly decreased since March, further supporting the idea that the market is not yet mature.
Sachi disclosed that while the March peak may have caused a temporary slowdown, it does not represent the end of the bull cycle. Instead, Bitcoin appears to be in a consolidation phase, where both price and time adjust before the next upward move.
The analyst added:
Once this phase concludes, another upward movement could follow. Before we reach the final top, we will likely see renewed activity from long-term holders, with Binary CDD reaching the red zone, signaling the next round of price adjustments.
Bitcoin Current Market Performance
So far, Bitcoin has continued to consolidate just below the psychological $60,000 price. Although the asset has attempted to breach this mark recently, it has been to no avail and led to more price decline.
Currently, Bitcoin is down by 5.7% in the past week. However, its price performance over the past day has demonstrated a slight recovery up by 1.5% to a current trading price of $57,171 at the time of writing.
Featured image created with DALL-E, Chart from TradingView
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