CryptoQuant Says It's Still a Good Time to Enter the Market and Buy the Dip

Bitcoin (BTC) surged 34% in November, but data indicates investors haven't yet seen the explosive price action and peak excitement of a crypto bull run.

Despite the recent surge in crypto prices, analysis platform CryptoQuant suggests that it may still be a good time to enter the market and buy the dip.

Bitcoin (BTC) surged 34% in November, but data from CryptoQuant indicates that investors haven’t yet seen the explosive price action and peak excitement of a crypto bull run. Altcoins also showed strong gains, and CryptoQuant believes that there’s still potential for growth.

According to CryptoQuant, its Bitcoin Bull-Bear Market Cycle Indicator shows that the market hasn’t reached the “Extreme Bull phase.” The platform explains that traders can enter the market during drawdowns, which are typically seen in bull markets. For example, the 2017 bull run saw a 22% drawdown, while 2021 featured crashes of 10% and 30%.

Similarly, the 2024 market cycle experienced drawdowns of 15% and 20%. Since this is just the beginning of the cycle, investors can expect future crashes that could offer good entry points. CryptoQuant also noted that higher prices push traders towards speculative bets, which presents a good buying point once these bets are flushed.

Analyzing market indicators for a potential price surge

The Net Taker Volume (24HMA) measures the difference between taker buying and selling. According to CryptoQuant, taker selling pressure is approaching important highs of -$30,000,000, which could indicate a good market entry point.

This surge in taker selling pressure shows that investors are willing to pay higher prices, suggesting that bulls could soon take over. Another bullish indicator is the Accumulation/Distribution line for Bitcoin.

The Accumulation/Distribution line has been trending up since the beginning of November as Bitcoin hit its all-time high of $99,655.50. However, five days ago, a slight distribution was observed.