- Analyst views Bitcoin’s breakout as a sign of future growth, with potential buying opportunities during the current correction.
- Glassnode’s RHODL Ratio decline shows increasing short-term activity, with no mass exit from long-term holders.
- Despite Bitcoin’s rise, low Puell Multiple suggests external factors driving the market, with potential for more growth.
Bitcoin is also performing well and has recently broken the $106,000 resistance, indicating that the crypto market has a promising future. Market analyst Michael van de Poppe believes there are huge buying opportunities in the current correction, which is mostly fueled by panic selling. He is indicating that the market could retest lows of past sessions during the weekend but will recover next week.
Blockchain analytics company Glassnode noted RHODL Ratio of BTC. This metric is the comparison of long-term holders (coins held between 6 months and 2 years) and younger coins (1 day to 3 months old). Although the ratio has reached its peak in 2024, it has started to decrease, which points to the higher short-term activity. Nevertheless, no mass participation of older holders leaving the market has been observed.
Source: Glassnode
Bitcoin’s Surge: Are External Factors Driving the Market?
The rising price coincides with the fact that BTC is making new records, having exceeded the $106,000 mark. It is a very important development, indicating that the bullish market might be gathering momentum. Nevertheless, analysts also note that the Puell Multiple indicator, which suggests the daily revenue of miners divided by the annual mean, remains low and has yet to fall below 1.40.
Source: TradingView
The low Puell Multiple suggests that miners are not fully benefiting from the Bitcoin price increase. Since the price has increased, the revenue received by the miners has not achieved the trend of the market rise. That is a sign that the market could be driven by external factors, such as institutional demand, BTC ETFs, or a shrinking supply, rather than by mining itself.
Bitcoin’s Bullish Potential
In the past, the Puell Multiple reading of less than 1.0 indicated undervaluation phases. It is at such periods when the price of BTCdoes not entirely represent its long-term growth potential. This indicator being at low levels while BTC is setting a new all-time high is uncommon and suggests that the market has not yet reached its peak euphoric stage.
Source: X
This becomes a possible opportunity to the investors. The bull run might not be over yet, with Bitcoin at a new all-time high and miners continuing to experience low incomes. Bitcoin might exceed its current highs in case the revenues of miners rise in the next months due to the growth of demand.
As the price of Bitcoins sets new highs, the fundamentals of the market indicate that there is more upside left. Low Puell Multiple and growing outside demand might result in rising prices and better profitability of miners in the coming months. This combination suggests that the bullish BTC trend is not yet over.
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