The cryptocurrency market has seen a fluctuation in recent days as the upward trend from January has slowed down. However, Ki Young Ju, the Co-founder, and CEO of CryptoQuant, tweeted that Bitcoin has entered the early bull phase.
He suggests that most investors are still underwater when looking at on-chain PnL-related indicators such as MVRV and that it is unlikely that anyone would want to sell at this point, given the significant losses that would be incurred.
He also notes that if there is a significant amount of selling taking place, it is likely due to forced or unwanted selling resulting from bankruptcy or government seizures.
Ju further acknowledges that there are still risks associated with the cryptocurrency market, including contagion and macroeconomic risks. In the coming months, there may be further bankruptcies, mergers and acquisitions, and capitulations.
However, he stated that from an on-chain perspective, large holders of Bitcoin (whales) have not yet moved their coins, despite the recent price surge, which suggests that the market may not yet have reached its target. Additionally, Ju also mentioned, “see the report published a week ago” by Julio Moreno in his tweet.
CryptoQuant Senior Analyst Analysis Of Bitcoin Price
In a report published by CryptoQuant last week, Senior Analyst Julio Moreno stated that the Bitcoin price rallied 22% over the course of the week, from around $17,000 to a high of $21,300, the highest price since late October 2022.
Moreno also noted that several valuation metrics are signaling the early signs of a bull market, and others are close to confirming that the price trend has shifted. Additionally, the flow of BTC to derivative exchanges has confirmed that traders have entered “risk-on” mode, which is often considered a sign that a new bull cycle has begun.
It should also be noted that some risks of a pull-back remain, as Bitcoin seems to be overvalued in the short term, given the fast price increase in the past week.
Nevertheless, according to CoinMarketcap, Bitcoin is currently priced at $22,980.85 and has seen an uptick of 1.74% in the past 24 hours and an increase of 10.82% over the past week. Trading activity has risen by 19% in the last 24 hours, and the market capitalization has also increased by 2%.
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