Cryptocurrency analytics company CryptoQuant has assessed the latest Bitcoin market trends, stating that the largest cryptocurrency has entered a new phase in its cycle.
Current Bitcoin Market Situation
Bitcoin, which has recorded an impressive 129.2% rise over the past 12 months, recently surpassed the $100,000 threshold again. According to CryptoQuant founder Ki Young Ju, Bitcoin is currently in the final stages of a bull market but there is still room for further growth. Ju noted, “We are in the early distribution phase as new retail investors are entering. Trump’s global promotional impact could extend this bull run for a few more quarters.”
Analysis Based on Dow Theory
CryptoQuant’s analysis integrates the Dow Theory, a widely used model for understanding market movements. According to this framework, Bitcoin experienced a distinct distribution phase in 2022, which led to a technical turning point around the 2022-2023 curve. This was followed by a long accumulation phase throughout 2023 and 2024, paving the way for the transition to the current distribution cycle.
Forecasts and Prospects
Despite entering a distribution cycle, Bitcoin still has the potential to reach new highs, according to the analytics firm. CryptoQuant’s assessment notes that Bitcoin’s funding rate remains relatively low, similar to levels observed in the summer of 2024. This suggests that the market is not currently overleveraged and offers more opportunities for price discovery. Another prominent analyst, Axel Adler Jr., noted that the Bitcoin market “is not overheated and under stable macroeconomic conditions, BTC has further growth potential.” Bitcoin’s power law fit is located at $87,990, according to the analytics firm, serving as a fair price indicator and a lower spot support level.
Analysts are confident in Bitcoin's long-term prospects, noting its resilience and potential for further growth in a stable macroeconomic environment.
