Bull Market Persistence Signal: CryptoQuant’s IBCI Indicates Continued Bitcoin Rally

Despite recent Bitcoin all-time highs, indicators suggest significant room for further gains.

Key Takeaways

• The Index Bitcoin Cycle Indicators (IBCI) from CryptoQuant points to sustained bull market momentum.
• Bitcoin trades near an “all-time high,” yet the market remains in a “point of definition,” indicating consolidation.
• The Puell Multiple metric shows unusually low levels for a market peak, suggesting undervaluation relative to long-term growth potential.

Bitcoin (BTC) appears primed for a “new upward leg” according to the Index Bitcoin Cycle Indicators (IBCI) tool from CryptoQuant, a platform renowned for its on-chain analysis. The data indicates the bull market extending beyond recent price peaks.

Market Stabilization Amidst All-Time Highs

According to CryptoQuant contributor Gaah, the IBCI recently reached a pivotal “zone of definition,” signaling a neutral point in the market cycle following a correction post-October’s all-time high. While BTC/USD surged past the $73,800 mark, the IBCI stabilized around the 50% level.

“Currently, IBCI has stabilized in the 50% range, indicating a neutral point in the market cycle,” Gaah stated in a “Quicktake” blog post.

Gaah interprets this consolidation as a transitional phase, not exhaustion. Investor behavior has been calmer than previous ATH events, potentially allowing for further price discovery.

“The absence of extreme euphoria and the gradual recovery of the Bitcoin price suggest that the market is in a transitional phase – not exhaustion,” Gaah explained.

Historical data shows that periods of consolidation within the IBCI often precede sustained upward movements in Bitcoin’s long-term trajectory.

Unusual Metric Suggests Undervaluation

The Puell Multiple, another component of the IBCI analysis, currently sits at 1.27, an unusually low reading for a market peak.

“Historically, when Puell Multiple is below 1.0 we associate periods of accumulation or undervaluation,” Gaah wrote. “Seeing this indicator at such low levels during a new all-time high is rare… There is room for expansion, both in mining revenues and in positive market sentiment.”

While miner revenues typically rise during bull markets (indicated by a higher Puell Multiple), the current divergence signals that market sentiment and price may not yet reflect the full potential of the ongoing cycle.

Contextualizing Recent All-Time High

Multiple market indicators, CryptoQuant noted, suggest Bitcoin is revisiting price discovery mechanisms. Despite breaching the $112,000 threshold – a point previously considered a potential “bull market peak” on their list of 30 metrics – no major red flags have triggered widespread panic or profit-taking.

Analysts continue to cite $200,000 as a plausible target for Bitcoin’s price in the ongoing bull market.