Story Highlights
- Bitcoin bull cycle is over, warns CryptoQuant CEO Ju.
- Ju predicts Bitcoin’s bearish or sideways trend for months.
- Ju holds Bitcoin but acknowledges bearish market trends.
Ki Young Ju, the CEO of CryptoQuant, believes that the Bitcoin bull cycle has officially ended. Bitcoin investors can expect a period of bearish or stable price movements between 6 months and 12 months, according to his prediction. The withdrawal of fresh liquidity creates a situation where whale investors sell their Bitcoin properties at declining prices.
Ju executes principal component analysis (PCA) on different on-chain metrics to validate his analytical findings. Three key on-chain indicators evaluate Bitcoin market behavior through MVRV (Market Value to Realized Value), SOPR (Spent Output Profit Ratio) and NUPL (Net Unrealized Profit/Loss). He relies on a 365-day moving average to track important changes in Bitcoin price movements. His analysis of market data shows that a bearish trend has begun to take over the market.
Ju Predicts Bitcoin Struggles Ahead Despite Holding BTC
The market bullishness continued for two years before Ju became optimistic. Despite uncertain market indicators, he maintained his optimistic assessment. The expert changed his initial perspective regarding the market. Some users had previously criticized his sell signal from 2020, but it proved incorrect. The analysis shows a definite indication of price reduction despite his original position.
Ju bases his negative market prediction on several critical elements. The indicators based on realized capital indicate there exist diminishing new investment flows. Bitcoin lost its ability to keep ascending while trading volume hit high levels near $100,000. The market has recorded negative exchange-traded fund (ETF) inflows during the past three weeks. The accumulation of evidence demonstrates that market buying power is waning at present.
Ju continues to be a Bitcoin holder even if he does not expect prices to decrease. He holds Bitcoin while retaining his support for its enduring value. The bearish market indicators force him to acknowledge their existence, though he maintains his Bitcoin ownership.
Ju predicts Bitcoin will face challenges over the upcoming months. Analytical data contradict the continued optimism of some market participants. Market participants follow with keen observation for any signs showing that bullish momentum could return.
