Bitcoin’s price has admirably bounced back above the $85,000 mark, indicating a robust recovery from the recent dip to $74,000. An on-chain expert suggests this market adjustment may not be as negative as initially feared and could instead signify a component of a larger bull cycle.
Can Bitcoin’s Price Attain a New Record High in This Cycle?
A crypto analyst, known by the pseudonym ShayanBTC, offered new perspectives on the prevailing Bitcoin market trends and the ramifications of the latest price drop in a Quicktake article on the CryptoQuant platform. This analysis uses the Realized Cap of Unspent Transaction Output (UTXO) age bands, a metric that studies the purchasing habits of diverse investor cohorts.
The UTXO age bands gauge compares the mean price Bitcoin holders bought their coins at and how long they’ve retained those assets. ShayanBTC’s recent analysis focuses on the 3 – 6 months and 6 – 12 months age bands.
Data from CryptoQuant shows an unbroken increase in the percentage of coins held by these investor groups. ShayanBTC points out that this growth mirrors the accumulation patterns seen during the extended correction in the summer of 2024.
According to the Quicktake analyst, this pattern indicates a “holding trend” where 3 – 6 months and 6 – 12 months investors are retaining their assets despite the current market correction. “As more coins transition into the possession of long-term holders, the available circulating supply decreases, enhancing Bitcoin’s scarcity,” added ShayanBTC.
Historically, these supply constraints can trigger strong price surges, particularly when coupled with new demand. ShayanBTC believes this market behaviour could trigger price discovery and push Bitcoin’s price to unprecedented highs.
Moreover, the Quicktake analyst thinks that the current on-chain structure suggests a lower probability that the Bitcoin market is at the onset of a bear season. The ongoing drawdown seems to be a healthy correction within a wider bullish cycle.
An Overview of Bitcoin’s Price
Bitcoin’s price appears to be gathering bullish momentum, briefly surpassing $86,000 in the early hours of Sunday, April 13. At the time of writing, BTC stands at around $85,200, representing a more than 2% upswing in the last 24 hours. Data from CoinGecko reveals the leading cryptocurrency has risen by roughly 2% in the past week.
