Optimism is bolstered by a lack of retail liquidity.

Bitcoin has experienced a significant price increase over the past few weeks, surpassing the $40,000 mark and reaching its highest level since April 2022. This upward trend is evidenced by the positive Coinbase premium due to increasing interest from US investors.

Experts suggest that the next target level for the leading crypto is above $50,000.

Bitcoin is targeting $50,000 to $53,000

According to the latest report by CryptoQuant, the network activity shows a possible price target of $50,000 to $53,000, considering Bitcoin's current price of $43,000. Taking a long-term view, the crypto intelligence platform's Bitcoin Bull-Bear Market Cycle Indicator shows a bullish market.

Additionally, the optimism is bolstered by the lack of cash from retailers and the high volume of BTC held over a year. This suggests a positive direction for future Bitcoin price action.

According to CryptoQuant's latest analysis, Bitcoin may seek a range of $50,000 to $53,000 based on the valuation view from network activity.

These thresholds represent the red Metcalfe price band, which evaluates Bitcoin user activity, particularly active addresses. This band served as a resistance level for Bitcoin in April and November 2021 as well as April 2022.

The Bitcoin bull is away from the edge

Given the high funding rate and the fact that 86 percent of the circulation supply is currently profitable, there may be a short-term correction. It is worth noting that historically such levels have often been aligned with the top of the area.

Although the short-term view advises traders to be cautious in the current situation, an examination of the long-term view reveals a bullish signal from the Bitcoin Bull-Bear market cycle indicator.

It is important to note that the indicator is approaching an overheated bull level (red area) that has historically been associated with a temporary stop or correction in a price rally.

The report also says that the crypto market is far from reaching this bull run, given that whales are unlikely to profit from the lack of exits from retail traders.

“Overall, the lack of pricing from retail traders, coupled with a 1+ year unmoved all-time high in Bitcoins, results in an optimistic long-term outlook for Bitcoin's price action.”