Is Bitcoin on the Verge of a $100,000 Breakthrough? CryptoQuant's Insights Revealed!

Bitcoin (BTC), the largest cryptocurrency, is approaching $100,000. While some experts believe the markets are overheated, CryptoQuant's researchers argue that the peak is still ahead. Here's why the current situation might resemble the cautious optimism of Q2 2020.

Bitcoin (BTC) Enters Third Phase of Its Cycle: What Does This Mean?

Bitcoin (BTC) has just reentered the "orange" phase of its price cycle according to the SMA Multiplier chart. This signifies that BTC has entered the third stage of its rally, out of eight stages historically observed, as noted by Axel Adler, community expert of CryptoQuant.

The SMA Multiplier model employs a four-year (1,458-day) simple moving average of daily BTC prices to calculate the ratio between the current price and the SMA1458. Each multiplier is mapped to a color range: Green (<1.5), Yellow (1.5-2), Orange (2-2.5), and beyond. As BTC finds itself in the "orange zone" at current sub-$100,000 prices, this is displayed on a logarithmic scale.

CryptoQuant CEO Ki Young Ju confirms the validity of this model for the ongoing cycle, suggesting a bullish outlook for Bitcoin enthusiasts:

"Bitcoin cyclical top still has a long way to go."

Given Bitcoin's current surge, the situation echoes that of late Q3 2019 and Q2 2020, when BTC was attempting to overcome the $10,000 threshold.

Bitcoin (BTC) Price Discovery Patterns Hint at Seven-Digit Levels

In a descending pattern, Bitcoin entered similar zones just before the Terra/Luna ecosystem crash in May 2022. On November 22, Bitcoin reached an all-time high of over $99,600 on major spot exchanges, as reported by CoinGecko.

Recently, Ki Young Ju shared two "parabolic" scenarios for Bitcoin's price discovery:

• If the run follows the 2017 pattern, it could target $1.15 million.
• A more conservative 2020 pattern suggests a maximum of $262,000.