Crypto data platform Glassnode analyst James Check warned that Bitcoin (BTC) could be approaching the peak of a bull market by analyzing current price movements and comparing them to previous cycles. Check’s analysis on March 25th showed that Bitcoin’s current position reflects the trend from December 2020, just before reaching its all-time high.
Peak Warning Issued
In his analysis, Check pointed out that Bitcoin is currently in a similar position to the one in December 2020, about 35 months after its previous peak in April 2021. He added that Bitcoin’s potential rise to $73,750 in March 2024 closely resembles the price increase that followed December 2017’s all-time high, which led to a rapid ascent to $64,000 within a few months.
The analyst measured the recovery period from the start of the bear market sentiment in April 2021 and noted that Bitcoin’s price saw a subsequent recovery during this time. Although Bitcoin has technically surpassed its highest price level of $69,000 reached in November 2021, Check considers April 2021 as the real peak due to significant sales from long-term investors during that period, from an on-chain behavior perspective.
Current data shows that long-term investors are selling 257,000 BTC on a monthly basis, indicating a distribution model similar to previous market rallies. Even smaller investors, colloquially known as “Bitcoin shrimps,” are selling their BTC holdings, contrary to their accumulation during the bear market, which supports the analyst’s peak prediction.
Despite this selling pressure, Check emphasized that the market continues to remain strong, noting that the current bull market trend is one of the strongest in history. He also forecasted that the market will go through a period of consolidation and potential minor fluctuations in the upcoming weeks and months.
Ultimate Bull Market Target at $250,000
Check’s latest Bitcoin analysis follows his previous prediction that the price could reach $250,000 at the end of the current bull cycle. As of the writing of this article, BTC is struggling to maintain above $70,000 after a short-term pullback last week.
