Bitcoin is on the cusp of reaching an unprecedented milestone, eyeing the $100,000 mark per coin. Recently, Bitcoin achieved a new all-time high (ATH) of $99,588 but experienced a 7% pullback, dropping to $90,791 on Tuesday. By Wednesday, however, the cryptocurrency showed signs of recovery, and as of Friday, it is on an upward trajectory, trading around $97,000.
This market optimism is further bolstered by political developments, notably the confirmation of Gary Gensler’s exit in January 2025. Such events could serve as a significant catalyst, potentially propelling Bitcoin beyond the coveted $100,000 threshold. With the recent touch of $99,000, the bullish momentum shows no signs of abating.
Bitcoin’s Miner Activity: A Key Indicator
Bitcoin miners play a crucial role in shaping market trends, offering valuable insights. One important metric to consider is the Puel Multiple, which evaluates miner profitability by comparing the daily mined Bitcoin to the average amount mined over the past year. A high Puel Multiple suggests that miners might sell their holdings, increasing market supply, whereas a low Puel Multiple indicates that miners are less inclined to sell, signaling potential market stability.
Currently, the Puel Multiple is positioned mid-range, suggesting that buying Bitcoin now is akin to buying during past market highs, such as the 2017 bull run. This metric also implies that the current bull run might not be over, leaving room for Bitcoin to potentially surpass the $100,000 mark.
Technical Overview: Where Are We in the Cycle?
The MVRV Z-Score is another critical indicator, comparing Bitcoin’s market value with its realized value—the average price at which Bitcoin was last traded. If the market value significantly exceeds the realized value, Bitcoin could be overvalued. Conversely, a lower market value suggests a buying opportunity.
At present, Bitcoin’s position on this indicator reflects that we are in the midst of the current cycle. Historical trends suggest a potential market peak around March or April 2025. However, some experts speculate that the bullish cycle might extend into late 2025, drawing parallels to the 2021 bull market peak.
What’s Next for Bitcoin?
Currently trading above the $94K-$95K range, a confirmed breakout above $97K could pave the way for a price target near $104K. However, resistance levels between $97.5K and $98.12K might pose challenges in the short term.
With robust support around $91K-$92K, Bitcoin’s price dynamics indicate a mix of consolidation and bullish potential. Investors are keenly observing for a decisive movement past the $100K resistance. As the landscape evolves, the cryptocurrency market remains a space of intrigue and opportunity, with Bitcoin at its forefront.
