Leading on-chain analytics company CryptoQuant has issued a warning to investors who expect the price of Bitcoin (BTC) to maintain its upward momentum beyond the $94,000 threshold. According to the company’s warning, the price peak of the current Bitcoin cycle may be near.
Their analysis highlights key indicators that signal potential exhaustion in BTC’s bullish momentum. This raises the question: are these signs really worrying, or can the growth momentum still continue?
Bitcoin Could Soon Be Overvalued, According to CryptoQuant
One metric that CryptoQuant mentioned that could indicate the Bitcoin price is at its highest is the Market Price to Real Price ratio (MVRV). The MVRV ratio is an important measure to evaluate whether the Bitcoin price is overvalued or undervalued.
Historically, values above 3.7 have often marked price peaks, indicating overvaluation. Conversely, values falling below 1 indicate a price bottom, suggesting undervaluation. At the time of writing, Bitcoin’s MVRV ratio reached 2.62
This suggests that Bitcoin price is no longer undervalued. While not yet at an extreme valuation, continued upward momentum could push BTC closer to that peak.
Additionally, the on-chain data provider highlighted that the Crypto Fear and Greed Index has entered an “extreme greed” phase, a strong indicator that Bitcoin’s price peak may be near. arrive.
This observation is in line with recent analysis from TinTucBitcoin and a warning statement from CryptoQuant CEO Ki Young Ju, forecasting potential risks as the market moves into 2025.
The company also emphasized that Bitcoin is currently lacking new capital. The 365-day Realized Cap Growth Index — a measure to identify bull and bear market periods, makes this clear.
“For prices to remain stable, new money must flow into the market; If there is not enough cash flow in, price pressure increases,” declared on X.
As seen above, Bitcoin has recently seen capital inflows. But most of this capital flow comes from old capital, suggesting that retail investors have not yet exerted great pressure. Meanwhile, it was also revealed that selling by long-term investors could limit BTC from reaching the highs that investors desire.
BTC Price Forecast: Higher Before Correction
At the time of writing, the Bitcoin price is $94,248, and it is trading in an ascending channel. The Bull Bear Power Index (BBP), which measures the strength of buyers relative to sellers, is also in positive territory.
When BBP rises, it means the bulls are in control, and the price is likely to rise. Conversely, when the index drops into negative territory, it means that the bears are in control. Therefore, current indicators suggest that the Bitcoin price peak may not be here yet.
If that is true, then BTC could surge towards the $100,000 mark. However, if the MVRV ratio climbs closer to 3.7 and the cryptocurrency continues to lack new inflows, a correction to $80,795 could follow.
