Bitcoin bull market metrics point to $146K price target

Bitcoin’s (CRYPTO:BTC) valuation metrics indicate that the ongoing bull market still has significant room for growth, with analysts projecting a potential price target of $146,000 based on historical trends and market data.

According to a November 27 report by CryptoQuant, Bitcoin remains far from the overvalued levels typically seen during market cycle peaks.

The holdings of new Bitcoin investors currently represent just over 50% of the total invested, compared to over 90% in 2017 and 80% in 2021.

This suggests that the market has yet to reach the speculative highs associated with prior cycle tops.

Retail investor activity has slowed in recent weeks, with retail holdings declining by 41,000 BTC since October.

Meanwhile, institutional and large-scale investors have added 130,000 BTC during the same period.

Analysts note that institutional interest, particularly through Bitcoin exchange-traded funds (ETFs), is driving the current accumulation phase.

In November, ETF inflows reached a record $3.1 billion in a single week, coinciding with Bitcoin’s peak of $99,655.50 on November 22.

Despite this momentum, Bitcoin’s price has corrected to around $91,000, failing to breach the $100,000 resistance level.

Analysts caution that the cryptocurrency may face further corrections of up to 30% before resuming its upward trajectory.

CryptoQuant’s bull-bear cycle indicator has been in the bullish zone since early November but has yet to reach overheated levels.

“The PL Index has not reached overvalued levels so far this cycle, which indicates the price would still have room to increase,” the report emphasised.

With retail participation still subdued and institutional investors leading the charge, Bitcoin’s valuation metrics support the view that the bull market is far from its peak, leaving room for potential growth toward the $146,000 price target.

At the time of reporting, the Bitcoin (BTC) price was $95,909.66.