Bitcoin Bull Run Isn’t Over Yet: On-Chain Data Hints At $145K Mark

• On-chain data suggests new Bitcoin investors are yet to reach “extreme levels.”
• Historical patterns indicate the current BTC cycle is far from its peak.
• Analysts project a breakout above $110,000 could push BTC toward $145,000.

Bitcoin’s (BTC) latest price surge raises questions about whether the bull market is nearing its peak. However, data from on-chain analytics firm CryptoQuant offers a different perspective.

Recently, on-chain data revealed that the Bitcoin bull market still has upside potential. Key indicators remained far from historical cycle highs, suggesting more for growth.

Bitcoin’s Bull Market Top Remains Elusive

The CryptoQuant report suggests otherwise than speculation about the ending of upward moments in the bull market. Per the January 28 Quicktake blog post, new investor engagement remains below the extraordinary levels seen at bull market peaks.

A significant volume of transactions characterized peaks in 2013, 2017, and 2021. As experienced holders sold their holdings, fresh market participants stepped in.

CryptoQuant contributor IT Tech emphasized that the current Bitcoin cycle has not shown the same blow-off top characteristics. The analysis focused on unspent transaction outputs (UTXOs) key market behavior indicators.

IT Tech highlighted that younger UTXOs—coins dormant for less than three months—have increased. At the same time, they remained far from the extreme thresholds seen during prior cycle peaks.

“The chart suggests that we are entering a phase of increased market activity, but the proportion of young UTXOs is not yet at the historical peak levels,” the blog post stated.

This trend aligned with data from other analytics platforms, such as Glassnode. This confirmed that new investors account for just over half of UTXOs.

During prior all-time high (ATH) peaks, this metric exceeded 70%, indicating a frenzied influx of inexperienced traders. Glassnode’s recent post on X supported CryptoQuant’s findings. This further confirms that wealth held by new Bitcoin investors remains below historical highs.

$110,000 Breakout Could Trigger a Rally

BTC price continues to hover within a $20,000 range, fueling optimism among market participants. Traders argue that a breakout could push BTC toward uncharted territory.

A well-known trader, Jelle, noted that BTC’s bullish pennant formation had already broken out and successfully retested its support levels. According to Jelle, a daily close above $110,000 would set the stage for a run toward $145,000.

“This bullish pennant has a target of roughly $145,000. Broke out, and retested successfully,” Jelle told followers on X. The trader added, “Daily close above $110,000, and we’re off to the races.”

Historical data backs this optimistic outlook. CryptoQuant’s report highlighted that blow-off top territory typically occurs when younger UTXOs surpass 70% of the total. With current levels below 60%, the data suggests more upside remains in Bitcoin’s ongoing cycle.

Market Watchers Eye $145,000 Target

As Bitcoin consolidates, analysts remain divided on whether the next leg up will materialize soon. Despite the prolonged sideways movement, growing market activity among new investors suggests a gradual buildup of bullish momentum. Bitcoin’s price surge has boosted interest in BTC transactions, including online gambling. BTC casinos, offering fast transactions and privacy, are seeing increased activity as traders seek to utilize their holdings, especially during bull markets when Bitcoin adoption spikes.

CryptoQuant’s IT Tech urged traders to monitor the ratio of young UTXOs to long-term holdings. They advised this for potential warning signs of a market top.

Bitcoin price stood at $100,592, with market participants closely monitoring the $110,000 resistance. If Bitcoin breached this level, analysts anticipated the next target to be near $145,000.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.