Despite a recent market dip, Bitcoin is kicking off 2025 with a bang, because after starting the year at around $91,000, BTC has already surged to nearly $98,000.
With this upswing, analysts are buzzing about Bitcoin’s future and whether it’s still in a bull market.
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Better believe it
CryptoQuant shared that several on-chain indicators suggest that Bitcoin’s bull phase is still pretty alive and kicking. Here’s what they’re seeing:
- Adjusted SOPR: Bitcoin’s Adjusted Spent Output Profit Ratio, the SOPR indicator has dipped below 1. Historically, when this happens, it usually signals a price rebound since it indicates that people are selling at a loss, something that often triggers a reversal typical of bull markets.
- Miner Position Index: The MPI has been trending downwards without any significant transfers to exchanges. This suggests that miners are holding onto their BTC instead of selling it off, which is usually a bullish sign, as no more fresh supply on the market.
- Total Network Fees: Network fees have dropped, indicating less on-chain activity and a cooling off period. This suggests that the crypto market might be stabilizing after overheating.
- Funding Rate: The funding rate for Bitcoin has also turned negative. If this trend continues while market sentiment remains bearish, we could see another strong price surge.
We’re back, baby!
Even though Bitcoin has faced some corrections in the past weeks, on-chain data hints at a potential rebound.
Another indicator, Bitcoin’s Market Value to Realized Value ratio ticked upward after its previous decline, sitting at 2.3 now.
This implies positive sentiment in the market and suggests there’s still room for growth.
Moreover, Bitcoin’s Net Unrealized Profit/Loss has also climbed to 0.57 over the last few days.
When NUPL sits between 0.5 and 0.75, it signals that the market is optimistic but not overly euphoric.
Absolute digital scarcity
Lastly, Bitcoin’s scarcity is on the rise as evidenced by its stock-to-flow ratio climbing. Increased scarcity can drive prices up, especially if demand stays steady or increases.
While Bitcoin has experienced some ups and downs over the past few weeks, it hasn’t yet hit its cycle peak.
If current conditions hold, BTC could break through the $99,500 resistance level and potentially soar past the $100K level soon.
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