Key Points
- CryptoQuant CEO, Ki Young Ju, predicts a bearish or sideways trend for Bitcoin for the next 6-12 months.
- Despite this, historical trends suggest Bitcoin could surpass its previous all-time high by mid-2025.
CryptoQuant CEO Ki Young Ju recently expressed his belief that Bitcoin’s bullish cycle might have concluded. He anticipates a bearish or sideways trend for the cryptocurrency over the next six to twelve months.
Ki Young Ju’s Warning
Ju’s latest analysis indicates a concerning shift in Bitcoin’s market cycle, with key on-chain metrics suggesting a bearish or sideways trend for the upcoming months. He shared a chart of Bitcoin’s Profit and Loss (PnL) Index, hinting that expectations for a strong rebound might be misplaced.
According to Ju, there is a decrease in liquidity inflows while newly emerged whales are selling their holdings at lower prices. His analysis applies Principal Component Analysis (PCA) to indicators like the MVRV, SOPR, and NUPL, using a 365-day moving average to identify trend reversals.
Warning Signs and Hope
Ju highlighted the decline in fresh liquidity as a significant warning sign for Bitcoin’s trajectory. He noted that newly emerged whale investors are selling their holdings at lower prices, a pattern that has historically indicated the start of bearish trends.
Despite the current bearish signals, historical trends suggest that Bitcoin could be on the verge of another major rally. An analysis of Bitcoin’s price movements since 2015 showed a seasonal growth pattern, with the strongest gains occurring between April and October. If this trend continues, Bitcoin might stabilize in the upcoming months before resuming its upward trajectory. Some projections even suggest that Bitcoin could surpass its previous all-time high by mid-2025.
While there is short-term uncertainty, long-term indicators may hint at significant upside potential for the Bitcoin. It remains to be seen whether Ju’s prediction will hold or if Bitcoin can ignite another bull run.