On-chain analysis platform CryptoQuant predicts that Bitcoin prices will increase further this year. He points to previous bull cycles as the basis for this. Accordingly, BTC reaches its highest levels after seven to nine months of inflows. The prediction comes amid mild market corrections.
CryptoQuant expects an increase in the coming months
cryptokoin.comAs you follow from, Bitcoin (BTC) price continued its upward trend in the first quarter of 2024. In the process, he took the market to new heights. In recent weeks, many bullish investors have predicted new highs for the market following the approval of the spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC).
A new market report from on-chain analysis firm CryptoQuant shows that an increase in Bitcoin price is expected in the next few months. Accordingly, BTC has not yet reached the peak of the current cycle. However, the market has faced slight corrections in recent weeks due to macroeconomic factors.
New investors are coming
Analysts note that the inflows recorded in the market will determine its highs and eventual end. Since market inflows from spot Bitcoin ETFs have not peaked, higher levels are expected in the coming months. Digital asset analyst Crypto Dan says BTC’s six percent decline indicates that Ned investors are moving into the market. In Q4 2023, investments in the market increased as traditional investors increased their interest in the asset. In this context, the analyst makes the following statement:
The decrease in the proportion of Bitcoins held for more than 6 months means that the number of Bitcoins traded for less than 6 months has increased. Therefore, it can be assumed that new investors are flocking.
Previous peaks trigger Bitcoin projection!
Historically, it takes about seven to nine months for prices to peak following new investments. During the 2017 bull run, it recorded the highest levels after nine months of inflows. Similarly, in 2021, it reached the highest levels after seven months. Additionally, the asset’s price rose to an all-time high above $64,000 before the bear season began. This year, the market has experienced three months of continuous inflow since the approval of ETFs. This indicates that the numbers are increasing.
Even with caution, analysts say the market hasn’t peaked yet. They also note that a sharp rise in Bitcoin is possible in 2024 as they expect additional inflows from US spot Bitcoin ETFs. At the time of writing, the leading cryptocurrency was trading at $70,225, up 1.4% on the day. BTC increased by 2.3% on its weekly chart. Moreover, it saw a significant improvement of 132% year-on-year.
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