- CryptoQuant Analysts Believe Bitcoin Traders Are Still in a Bull Market Despite the Recent Price Drop
- Bitcoin miner revenues have fallen significantly in recent days
Bitcoin [BTC] seemed to be stagnant around $66,000 at the time of writing. And yet, despite the questionable price action, the outlook for the world’s largest cryptocurrency remains as positive as ever.
Bull run season?
CryptoQuant analyst Ki Young Ju believes Bitcoin traders are still in a bull market despite the recent price drop. His optimism stems from the fact that the average entry price for Bitcoin traders is around $47,000. This means that even though BTC is down about 27% from its all-time high, most Bitcoin traders are still sitting on profits and are not forced to sell.
For his part, Ki Young Ju interprets this data as a sign of continued bullish sentiment. Historically, in bull markets, Bitcoin’s price usually remains above traders’ average entry price.
This is a sign that many traders are likely waiting for the price to rise again before selling. However, it is worth noting that the analyst also advised caution, recommending a long-term bullish approach while avoiding excessive risks in today’s volatile market.
Source:
Most of these addresses with BTC are long-term holders. Long-term holders are those who purchase Bitcoin with the intention of holding it for an extended period of time, often years or even decades. They tend to be less impressed by short-term price fluctuations, focusing instead on the potential for Bitcoin’s value to grow in the long term. This is reflected in the current average entry price.
Another factor that could influence the price of BTC could be the state of the miners in the industry. In recent days, the daily turnover of miners has fallen significantly, from 53 million to 34 million. If miner revenues continue to decline, it will be difficult for miners to remain profitable.
In such a case, they would be forced to sell their BTC holdings, which would add to the selling pressure on BTC and by extension, further price decline.
Source: Blockchain.com
A decline in activity and…
Activity on the Bitcoin network can significantly impact the revenue generated by these miners. In fact, AMBCrypto’s analysis of Santiment’s data revealed that the number of active addresses on the network increased from 688,000 to 613,000 over the past month.
The decline in activity and waning interest in Bitcoin’s ecosystem could put more downward pressure on BTC’s price action on the charts.
Read Bitcoin (BTC) price prediction 2024-2025
Source: Santiment