 
 
Bitcoin appears far from reaching its peak, despite growing speculation that the apex cryptocurrency has concluded its current bull cycle. New data, outlined by market experts, reveals the asset’s current position, along with potential risks associated with trading at this time.
Conversations about Bitcoin’s price have followed the crypto scene since Bitcoin bulls initiated a rally late last year. The incessant market turmoil has kept Bitcoin investors guessing, with each newly attained ATH fueling presumptions on whether or not Bitcoin has hit a local high.
However, fresh data from on-chain analytics firm Glassnode has revealed that Bitcoin’s recent surge to $122,000 positioned the asset above the short-term holder cost basis—the average price at which short-term investors purchased their Bitcoin.
According to Glassnode’s analysis, Bitcoin is poised to reach $136,000, a key level that has historically signaled profit-taking and local market peaks.
It bears mentioning that Bitcoin’s climb to a record $122k matched the period when every short-term holder’s supply was in the green, thereby eclipsing the 88% limit that previously signified a transfer from heated to overheated market—a position Glassnode describes as a “high-risk euphoric phase.”
 
After Bitcoin rose above the $120,000 price mark, the 7-day EMA of short-term holders’ profit-taking volume hit 82% sitting above the overheated limit of 62%. Although the spike above is a dual occurrence typically recorded in bull markets, Glassnode warns that a local top historically follows a repeat of these signals, which are witnessed at the same level.
Another key signal marking the arrival of a local price top can be observed when the ratio of realized profit to realized loss by short-term holders within the 7-day EMA rises to 39.8x—a move that was recently recorded, and marks a jump above the statistical boundary of the overheated zone. “While extreme, such structures have historically appeared multiple times before a final cycle top is reached,” Glassnode remarked.
Explaining that four key accumulation zones are likely to function as key support areas if Bitcoin begins to correct downwards, Glassnode wrote the following;
“The recent breakout from the multi-month range occurred after dense accumulation zones formed between $93k–$97k and $101k–$109k, as highlighted by the CBD Heatmap. These supply clusters are likely to act as strong support if a market correction unfolds.”
Conclusively, Bitcoin is reportedly set to enter the overhead phase, and cycle tops are expected to follow with a lag, while making room for an upside move. Meanwhile, risk levels have been heightened, and as evidenced by the current pullbacks, external shocks will have a major impact on market players. At the time of the report, Bitcoin is trading at $117,710.
Source: https://zycrypto.com/market-data-reveals-bitcoin-not-anywhere-near-its-top-but-risk-factors-remain-high/