u.today
The crypto industry saw a positive boost recently as the price of Bitcoin soared to a new all-time high (ATH). As reported by U.Today, Bitcoin jumped to $76,460.15 amid a sustained growth push over the past week. Despite this impressive boost, data insight platform CryptoQuant claimed that the coin is far from its best possible price high.
Where is the Bitcoin Price Heading?
According to the CryptoQuant data, the surge in the price of Bitcoin to a new All-Time High does not mean it is overvalued relative to its cost basis. The data platform said the MVRV ratio proves that Bitcoin is still far from peak levels. This implies that the coin is in the active price discovery phase.
Bitcoin’s new all-time high doesn’t mean it’s overvalued relative to its cost basis.
— CryptoQuant.com (@cryptoquant_com) November 6, 2024
The MVRV ratio shows $BTC is still far from peak levels.
The price is also close to the purchase cost of traders, indicating it’s not overheated.
This hints at a potential for further growth. pic.twitter.com/xeeDdipN9O
While almost 99% of traders are in profit at the moment, CryptoQuant hinted that the price is close to investors' purchase costs. This, it noted, is proof that the price is not overheated. With the technical indicators showing a potential for another rally, the question remains whether the growth will follow a linear trend.
At the time of writing, Bitcoin price was changing hands for $75,098.68, up by 2.67% in the past 24 hours. Its trading volume has, however, dropped by 17% within the same period to $77.99 billion, a proof of tempered sentiment.
Altcoin Ripple Effect
The growth in the price of Bitcoin has caused many altcoins, including Ethereum (ETH), to soar in unusual ways. While currently in a corrective mode, Dogecoin (DOGE) almost breached the $0.2 resistance level after soaring by over 12% in the past week.
Shiba Inu (SHIB) also took advantage of this rally to extend its gains after prolonged consolidation moves. The token saw a record boost in price and other metrics like burn rate and Shibarium transaction count. This helped it topple Avalanche (AVAX) again as the 12th largest digital currency.