A prominent analyst firm’s chief executive has suddenly turned bearish about Bitcoin. He says BTC is at a significant cycle peak.
CryptoQuant’s CEO Ki Young Ju told his 417.200 followers via the social media platform X, that data from on-chain suggests Bitcoin won’t reach new heights until at least a half year.
According to the executive of an analytics company, Bitcoin’s Profit and Loss (PnL), Index Cyclical Signals – a tool which aggregates several metrics on chain in order to determine cycle tops or bottoms – has just flashed what could be regarded as a sign that BTC bull market is ending.
Bitcoin could be about to move into bear territory, he says.
Every on-chain indicator signals a downturn. New whales have been selling Bitcoins at lower prices as fresh liquidity is drying up.
This alert uses PCA (Principal Component Analysis), to calculate a moving average of 365 days. It applies PCA to indicators such as MVRV, SOPR and NUPL. This alert identifies the inflection point where the trend for the 1-year moving average shifts…
“I double checked the data and it is accurate.”
The MVRV metric is designed to help determine if a cryptocurrency is undervalued or overvalued. It does this by comparing the current market cap (price) with the last average cap (realized cap). The SOPR metric tracks if holders are selling their coins at a loss or profit to identify price change areas.
Nupl is used as a way to gauge the general sentiment of the market by assessing whether investors are making a profit or losing money.
Ki Young Ju says that the signals on-chain suggest Bitcoin “is entering a bearish market.”
The realized cap-based indicator shows a lack in new liquidity. The price has not risen despite a massive volume of 100,000 shares. ETF inflows (exchange traded funds) have also been negative over the past three weeks .”
Bitcoin was worth $83157 at the time this article was written.
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Sources of Images include Pixabay Creative Commons & Midjourney
This article ‘Bull Cycle Is over’ – CryptoQuant’s CEO abruptly flips his stance on Bitcoin and warns that BTC could be bearish for one year appeared first on the ICD.
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