Bitcoin (BTC) continues to climb to new all-time highs on a daily basis, with crypto investors wondering what price level will be the next casualty of the cryptocurrency’s upward momentum. As market participants ponder what price will be Bitcoin’s final destination in this bull run, analysts have outlined on-chain conditions to watch for going forward.

A report from market intelligence platform Santiment emphasizes that it is more important to focus on what the market will look like when BTC peaks in this bull run than to continue speculating on how high the digital asset’s value can go.

Market Sentiment When BTC Tops

Santiment said it is possible to determine the state of the market when BTC peaks by assessing the actions of small BTC holders and how much profit they are currently making amid the asset’s rising prices. According to the market research firm, studying current market sentiment is essential for future insights.

“There are several ways to approach and analyze the market, often in a complementary manner. Methods include technical analysis, sentiment analysis, and on-chain analysis, to name a few. Below, we’ve chosen an approach that is both comprehensive and relatively easy to understand. We’ve also found success using these metrics to evaluate and predict previous BTC highs,” Santiment added.

While the behavior of small BTC holders (investors holding between 0.01 and 1 BTC) indicates whether retail traders are joining the rally, profit-taking patterns indicate whether these investors are slowing down to realize their profits. Profit-taking patterns signal greed and fear of missing out (FOMO) among retailers, which often precede market tops.

Profit-taking is useful now

According to Santiment’s analysis, retail activity and profit-taking had not been fully realized by November 13. Blockchain data shows that retail investors began reducing their BTC balances in mid-October as the rally began.

On the other hand, Santiment analysts have found a healthy pattern of profit-taking, showing spikes that correlate with each Bitcoin price increase. When Bitcoin reaches the market peak this season, analysts expect to see a pattern seen earlier this year, when BTC recorded a previous all-time high of $73,000 in March.

Meanwhile, it may be some time before BTC can top out this cycle, as some analysts believe the leading crypto asset could rise to $150,000, while others claim the bull market will last until October 2025.

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