After the Bitcoin price crash below $60,000, hopes that the BTC price will reach a new all-time high, at least for the short term, seem shattered. However, in the long term, analysts still expect the Bitcoin price to still recover from this point. One of those who believe that the BTC price will still hit a new all-time high is Ki Young, CEO of CryptoQuant, but there is a caveat to this rally.
Bitcoin price should contain $45,000
In an X (formerly Twitter) post, Ki Young, CEO of CryptoQuant, says revealed that Bitcoin price remains bullish even after the crash. However, the most important level is the $45,000 level as holding this level will be a determining factor in whether the bearishness continues or whether Bitcoin finds its way to a new all-time high.
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The reason for the $45,000 caveat is profitability levels of miners, which currently stand at $43,000. This €43,000 is the cost of mining one Bitcoin, taking into account all operating costs. This means that as long as the BTC price remains above $45,000, miners will continue to make a profit on every BTC mined.
However, a price drop below the $45,000 level will initially bring the Bitcoin price dangerously close to the cost of mining a BTC. A further decline could take it below the $43,000 level, at which point it would become unprofitable for miners to my BTCand possibly impacting the hash rate.
The CEO acknowledges that some signals are still bearish for the Bitcoin price. However, he believes that if the pioneer cryptocurrency can maintain the $45,000 level without breaking over the next two weeks, a recovery could be in the works. Following this, Young believes that the BTC price could reach a new all-time high before the end of 2024.
Bearish signal not seen since return in 2023
The X-post that CryptoQuant CEO responded to was from Julio Moreno, head of research at CryptoQuant. In the post, Moreno took a rather bearish stance, identify a strangely bearish signal that had not been seen in over a year.
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The Bull-Bear Market Cycle Indicator is one that can signal a return from the bear market. The researcher points to the 2020 COVID sell-off as one of the instances where this indicator has turned bearish. Judging from this historical performance, the Bitcoin and crypto market could be gearing up for another extended bear market, which would mean the market downturn is far from over.
Featured image created with Dall.E, chart from Tradingview.com