Data that led to Bitcoin’s all-time high is once again sending a signal, according to a CryptoQuant analyst. Axel Adler, a writer for CryptoQuant, noted that the average demand for Bitcoin among retail investors has dropped to its lowest point in five months, reaching levels last seen in January. This drop in demand preceded a surge in Bitcoin’s price, ultimately reaching an all-time high of $73,600 in March.
Adler highlighted the quick response of retail investors, pointing out that Bitcoin saw a 75% increase in the two months following the low demand levels in January. He mentioned that a similar drop in demand of around 18% in the past resulted in Bitcoin’s price rising from $40,000 to $70,000. Based on this historical data, Adler suggested that Bitcoin could potentially surpass $120,000 from its current price levels.
While this data may indicate a bullish trend, it is important not to base investment decisions solely on one data point or signal. These insights, while valuable, come with a margin of error and are not guaranteed to be 100% accurate. It is crucial to conduct thorough research and analysis before making any investment decisions.
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