Bitcoin’s price has maintained its red-hot shape over the past week, hitting consecutive all-time highs in less than five days. While Donald Trump’s success in the US elections may have sparked the recent rally, it appears that the rise of the premier cryptocurrency – and the cryptocurrency market as a whole – has taken on a life of its own.

Interestingly, the market has been wondering where the next high will be, and some experts and commentators believe that the BTC price rally is over. However, a prominent on-chain analytics firm stated that Bitcoin’s price still has room for some upward movement.

Four Reasons Bitcoin Price Is $100,000: CryptoQuant

In its latest weekly report, CryptoQuant revealed that Bitcoin, the world’s largest cryptocurrency by market capitalization, has not yet been overvalued despite recent positive momentum. According to the blockchain platform, the market leader may soon reach the highly desired price level of $100,000.

This projection is based on valuable indicators such as the MVRV (market value to realized value) ratio. As the name suggests, this indicator measures the ratio of market value to realized value of a cryptocurrency. As such, MVRV helps assess the tops and bottoms of the Bitcoin market.

CryptoQuant noted that Bitcoin is not yet overvalued at current price levels as the MVRV indicator is still outside the overvalued area. Ultimately, this means that the bullish price action is not overheated and Bitcoin’s price can still play a role in higher prices.

Moreover, Trader On-chain Realized’s maximum band points to $100,000 as the next target for Bitcoin’s price. According to CryptoQuant, the last time the high band reached its current level was in March 2024, when the main cryptocurrency broke above $70,000 for the first time.

Another on-chain observation that supports Bitcoin’s continued price growth is the escalate in demand. CryptoQuant highlighted that investor demand in the United States has returned since the presidential election, with Coinbase Premium remaining positive over the past few days.

Finally, cryptocurrency market liquidity has continued to escalate over the past few weeks as stablecoins hit exchanges. For context, over $3.2 billion in USDT has flowed into exchanges since the US election, signaling the potential for a sustained rise in Bitcoin prices.

Proceed with caution

However, CryptoQuant included a warning in its report, saying that there may be some selling activity following the recent price rally. Although some Bitcoin miners have started offloading their assets in order to make a profit, the blockchain company also noted that Bitcoin sales so far are still negligible but could soon escalate rapidly.

At the time of writing, Bitcoin is trading at around $91,270, reflecting a 4% gain in the last 24 hours. According to CoinGecko, the flagship cryptocurrency has surged over 19% over the past week.

Featured image from iStock, chart from TradingView