Key Points
- Bitcoin’s bull cycle is predicted to end, with bearish or sideways price movements expected in the coming months.
- Large Bitcoin holders, or ‘whales’, are selling Bitcoin in significant quantities.
Ki Young Ju, CEO of CryptoQuant, has forecasted that the bull cycle of Bitcoin is nearing its end. He anticipates bearish or sideways price movements for the cryptocurrency in the next six to twelve months.
Bitcoin’s Projected Price Movements
Ju’s prediction is supported by a historical chart that he shared, which displays cyclical signals of Bitcoin’s profit and loss index from 2014 to 2024. Bitcoin has seen a drop of nearly 0.8% in the last 24 hours of trading, with its current trading value at $82,752. The cryptocurrency has been on a downward trend over the past month, with a 15% decrease in value.
The Impact of Whale Activity
In a separate analysis, Ju applied the Principal Component Analysis method to on-chain metrics. His findings suggest that every on-chain metric is signaling a bear market. He noted, “With fresh liquidity drying up, new whales are selling Bitcoin at lower prices.”
Shortly after Ju’s analysis was published, a Bitcoin whale was observed closing its short position and making a profit of $4.06 million in just three days of trading. This particular whale is known for opening a long position on Ethereum at 50x leverage, worth around $200 million on Hyperliquid on March 12. This move resulted in a loss of $4 million for the platform.
Data from SpotOnChain revealed that the whale deposited around $17.82 million USD Coins (USDC) to Hyperliquid as a margin over the past three days to short Bitcoin with 40x leverage. The whale then closed all its positions and withdrew approximately 21.88 million USDC back to its wallet.
After closing all its positions, the whale spent 6.11 million USDC to buy 3,202 Ethereum. The trader also sold 3.28 million USDC in exchange for 1,040 PAXG tokens.
Recently, traders have witnessed a surge of whales opening large long and short positions with high leverage on Hyperliquid. On March 17, an anonymous whale was targeted by crypto traders for starting a short position for around $450 million worth of Bitcoin at 40x leverage.