Bitcoin’s metrics suggest bull market is far from overvalued
Bitcoin's valuation metrics indicate a continuing bull market, with a potential target of $146,000. Current holdings by new investors are just above 50%, significantly lower than previous peaks in 2017 and 2021. Retail activity has slowed, with a reduction of 41,000 BTC by retail investors since October, while larger investors have added 130,000 BTC. This shift suggests institutional players are driving accumulation. In November, Bitcoin purchases through ETFs reached a record $3.1 billion. The price declined to around $91,000 on November 26, unable to surpass the $100,000 resistance. Analysts predict a possible 30% correction before reaching six figures. The bull-bear market cycle indicator remains in the bull area but lags behind the overheated phase last seen in March 2024. The current top price target aligns with previous cycles, and the P&L Index indicates room for price increases.
