Bitcoin (BTC) May Be Moving Toward an Exclusive Market Peak, as Per CryptoQuant Analysis

As per datascope, a CryptoQuant analyst, surpassing Bitcoin's thirty-day profit and loss ratio may lead to a new bullish period.

A recent analysis by CryptoQuant, a prominent on-chain analytics firm, suggests that Bitcoin (CRYPTO: BTC) could be approaching a market peak.

According to a report on the CryptoQuant website, an analysis of Bitcoin's 30-day profit and loss ratio could indicate the beginning of a new bullish period.

"Surpassing the 30-day P/L will pave the way for another rally. This serves as a resilient signal of likely peak formation as investors regain profitability and confidence," the report noted.

The analysis compares the 365-day and 30-day P/L ratios to understand the broader market scenario.

"Short-term profit-loss ratios tend to react more quickly to price shifts. As the 30-day average crosses the yearly average, it usually points toward a rise in investor sentiment, which is also signified by increasing buying activity — both of which often precede market peaks," the report added.

The analysis highlights that this profitability trend aligns with market peaks in various conditions, including the economically challenging phase from 2021 to 2022.

"This persistence showcases the P/L ratio's potential as a reliable indicator, even during a highly volatile economic scenario," the report noted.

Based on the current trend in the P/L ratio, the CryptoQuant analyst suggests a positive outcome.

"If the 30-day profit-loss ratio continues to rise and maintains a higher level than the 365-day profit-loss ratio, this may offer resistance to an exclusive price spike," the report noted.

In this context, the sustained presence of the 30-day average above Bitcoin's long-term average could increase the likelihood for a bullish trend, pushing the primary crypto token toward new highs.

By monitoring the relationship between these two ratios, investors can gain insights into potential trend reversals and price ascents, enabling them to adjust their strategies based on the latest market movements.

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