DOGEUSD Dogecoin

The Bitcoin price continued its red-hot form over the past week, printing successive all-time highs in less than five days. While Donald Trump’s success at the United States elections might have kickstarted the recent rally, the growth of the premier cryptocurrency — and the general crypto market — seems to have developed a life of its own. Interestingly, the market has been left wondering where the next market top is, with some pundits and commentators believing that the BTC price rally has come to an end. However, a prominent on-chain analytics firm has come forward to say that the Bitcoin price still has room for some upside movement. Four Reasons Why $100,000 Is Possible For Bitcoin Price: CryptoQuant In its latest weekly report, CryptoQuant revealed that Bitcoin, the world’s largest cryptocurrency by market capitalization, is yet to be overvalued despite its recent positive momentum. According to the blockchain platform, the market leader could soon reach the highly-coveted price level of $100,000. Related Reading: Dogecoin Explodes 112% – Is $1 The New Target After This Historic Rally? The rationale behind this projection is based on valuable metrics, such as the MVRV (market value to realized value) ratio. As the name suggests, this indicator measures the ratio between the market value and the realized value of a cryptocurrency. As such, the MVRV helps to assess the tops and bottoms of the Bitcoin market. CryptoQuant noted that Bitcoin is not yet overvalued at the current price levels, as the MVRV metric is still outside the overvalued region. This ultimately means that the bullish price action is not overheated, and the Bitcoin price could still make a play for higher prices. What’s more, the Trader On-chain Realized max band is pointing to $100,000 as the next target for the Bitcoin price. According to CryptoQuant, the last time the max band reached its current level was in March 2024 when the premier cryptocurrency surpassed the $70,000 level for the first time. Another on-chain observation that supports the continuous Bitcoin price rally is the demand growth. CryptoQuant highlighted that investor demand in the United States has returned since the presidential election, with Coinbase Premium remaining positive in the past few days. Finally, crypto market liquidity has continued to increase over the past few weeks, as stablecoins make their onto exchanges.  For context, more than $3.2 billion in USDT has flowed into exchanges since the US election, signaling the potential of a sustained Bitcoin price rally. Tread With Caution However, CryptoQuant sounded a warning in its report, saying that some selling action could follow the recent price rally. While some Bitcoin miners have started offloading their assets for profit, the blockchain firm also noted that the Bitcoin selling seen so far is still insignificant but could rise quickly soon. Related Reading: How Low Can Dogecoin Go Before Rallying Again? Expert Forecast As of this writing, the Bitcoin price stands around $91,270, reflecting a 4% increase in the past 24 hours. According to CoinGecko, the flagship cryptocurrency is up by more than 19% in the past week. Featured image from iStock, chart from TradingView