As Bitcoin continues its gradual recovery in price, an analysis by CryptoQuant analyst "Crazzyblockk" offers insights into its quarterly performance by examining key metrics such as market capitalization and realized capitalization. These metrics help forecast long-term trends and potential future price movements.
According to the analysis, fluctuations in Bitcoin's market cap and realized cap can indicate bullish or bearish market trends. A rapid increase in market cap compared to realized cap may lead to selling pressure and bear markets, while a declining market cap with stable or rising realized cap can signal buying opportunities.
The study draws parallels between Bitcoin's current market situation and the 2021 boom, where significant market cap growth led to price corrections. Currently, the market cap's rise alongside the realized cap suggests another potential price correction as Bitcoin struggles to maintain its upward trajectory.
Bitcoin's recent performance saw a surge of nearly 10% over the past 14 days, approaching the $70,000 mark with a high of $69,227. Although experiencing a price drop below $67,000 to $66,980, some analysts, like "Moustache," remain positive about Bitcoin's prospects.
Notably, Moustache points out Bitcoin breaking out of a falling channel that persisted for over seven months, reminiscent of 2020's rally. Despite the decline, this bullish sentiment signals potential surprises for bears.
