Bitrabo Editorial
Recent price improvements in Bitcoin have sparked hope among investors for a potential upswing in the near future. Leading on-chain data provider CryptoQuant’s CEO, Ki Young Ju, has reiterated that the Bitcoin bull market is ongoing, indicating a potential price increase in the coming months.
Ki Young Ju, the CEO and founder of CryptoQuant, has expressed an optimistic viewpoint on Bitcoin after analyzing various bullish and bearish on-chain performances of the cryptocurrency.
Bitcoin Shows Promise Amidst Continuous Bull Market
Highlighting positive on-chain performances, Ju initially mentioned the recovery of Bitcoin’s hashrate, which is steadily approaching its peak level. He believes that the hashrate will remain stable unless Bitcoin’s price drops below the US mining costs, estimated at around $43,000 per Bitcoin.
Another favorable sign he identified was the increase in Bitcoin whale accumulation among long-term holders as well as new holders despite market fluctuations. Recent data indicates a rise of 404,000 BTC in Permanent Holder addresses and 40,000 BTC in US Spot Bitcoin Exchange-Traded Funds (ETFs) in the last month.
Additional encouraging on-chain performances include the reduced participation of retail investors, resembling the situation in 2020 before Bitcoin’s surge in 2021, and a decline in activities of old whales, particularly those holding BTC for over three years. Ju noted that these longtime investors transferred their Bitcoin holdings to new investors between March and June, indicating a lack of significant selling pressure currently.
On the other hand, regarding negative developments, Ju pointed towards forced sell-offs triggered by macroeconomic risks, highlighting significant crypto deposits from Jump Trading and Binance reaching a new Year-To-Date (YTD) high on a daily basis.
Ju also mentioned several on-chain indicators conveying bearish sentiment, likely due to the weekend crash. While these indicators are on the edge, the CEO of CryptoQuant believes that a market recovery could be challenging if negative trends persist for over two weeks.
Despite these observations, Ju remains optimistic about the ongoing bull market. However, a failure in market recovery within the next two weeks could prompt a reassessment of his stance. “I observe the smart money, so if I am mistaken, it implies that new whales are either misinformed or have underestimated the broader economic conditions,” he explained.
Bitcoin Approaches Complete Recovery
Bitcoin is still working towards a full recovery after dropping to approximately $50,000 following the weekend decline. Renowned crypto analyst and trader, Doctor Profit, noted that the digital asset is close to regaining its previous price levels, with negative sentiments fading away.
According to Doctor Profit, Bitcoin has seen a growth of more than 17% in the last three days, with just a 2% increase remaining to recoup all losses from the Monday downturn.