Julio Moreno, the Head of Research at Cryptoquant, has detected a heightened demand among Bitcoin holders, with data from Cryptoquant indicating an unprecedented inflow of Bitcoins into accumulation addresses—those that only receive but do not spend. In a recent post on X, Moreno detailed the significant increase in Bitcoin inflows into accumulation addresses during the recent rally. However, he cautioned that the rapid rise in BTC triggered various indicators signaling an overheating phase, including the Bitcoin bull-bear market cycle indicator, which flagged overheating at the $60,000 mark.
Moreno’s post highlighted that the last time the bull-bear market indicator signaled overheating was in December of the previous year, following an 83% rally in BTC, leading to a consolidation phase.
Additionally, Moreno analyzed the Bitcoin miners’ reward situation, suggesting that current market conditions indicate overpayment to miners, indicative of an overheating phase. This perspective aligns with the spike in miners’ rewards in December 2023 during a significant BTC rally.
Apart from these indicators, Moreno noted exceptionally high levels of traders’ unrealized profit at 45%, implying a potential profit-taking process as traders may sell their Bitcoins.
As of the latest update, Bitcoin is trading at $61,942, maintaining a four-day streak of sideways movement following its peak at $64,000. This consolidation phase aligns with Moreno’s observations. Nonetheless, the positive momentum in Bitcoin’s value persists, and users anticipate further gains as the current bull cycle unfolds.