Analysts at crypto exchange Bitfinex have predicted that the current bitcoin bull market cycle may peak in the fourth quarter of 2024.
"Historical data suggest that bitcoin typically reaches its new all-time high (ATH) several months after the halving event. Therefore, we predict the market top could occur around Q4 2024," Bitfinex analysts claimed in a note sent to The Block.
The analysts stated that bitcoin historically reaches its market top when a specific ratio goes above 3.2 — suggesting that there might be room for further growth before the digital asset hits a peak.
"Key metrics such as the market value to realized value (MVRV) ratio indicate significant unrealized profit, with a current MVRV value of around 2.56, historically, bitcoin market tops occur when the MVRV ratio exceeds 3.2," Bitfinex analysts added.
Bitfinex analysts forecasted that during the current cycle, Bitcoin BTC +0.96% could reach at least $120,000. "Based on on-chain indicators and historical patterns, bitcoin is expected to reach a peak of at least $120,000 during this cycle."
They further explained that while there are many price targets that forecast bitcoin could reach a much higher value during this cycle, they believe these targets are overestimated. "Investment into crypto assets could begin to happen, broadening away from bitcoin and into instruments such as the forthcoming ether ETFs and other altcoins," Bitfinex analysts added.
The world's largest digital asset by market cap increased by around 0.5% in the past day and was changing hands for $71,295 at 7:28 a.m. ET., according to The Block's Price Pages.