Bitcoin Bull Cycle Likely To Go On Till Mid-2025: CryptoQuant CEO
July 29 2024 - 1:30PM
NEWSBTC
The CEO and founder of the on-chain analytics firm CryptoQuant has
explained how this Bitcoin bull cycle could probably last till
mid-2025. Profit-Taking From Old Bitcoin Whales Lasted For 18
Months In Previous Cycles In a new post on X, CryptoQuant founder
and CEO Ki Young Ju has discussed about a pattern that old whales
have followed in terms of profit-taking during the past cycles.
“Old whales take profits during bull markets,” notes Young Ju.
“Their selling brings new capital into accumulation addresses,
raising realized prices.” Accumulation Addresses refer to the
Bitcoin wallets that have no history of selling. These addresses
also have a few other conditions, such as they must have at least
two deposits and shouldn’t be connected to miners or centralized
exchanges. They should also carry a balance of at least 10 BTC, and
their last transaction should have been within the past seven
years. Related Reading: Shiba Inu, XRP Forming Bullish Divergence,
Analytics Firm Reveals The Accumulation Addresses basically reflect
the perennial HODLers of the market, who only buy more and never
sell. During bull markets, as old whales break their silence to
harvest their profits, demand from these HODLers absorbs the
selling. To display this trend, the CryptoQuant CEO has made use of
the “Realized Price” metric, which keeps track of the cost basis of
the average investor belonging to this cohort. When the value of
this indicator is above the spot price of the cryptocurrency, it
means the cohort as a whole is in a state of unrealized loss right
now. On the other hand, it being under BTC’s value implies these
diamond hands are currently carrying profits. Now, here is a chart
that shows the trend in the Realized Price for the Bitcoin
Accumulation Addresses over the past decade: As shown in the above
graph, the Realized Price for this cohort observed a rise during
the last two Bitcoin bull runs. This would suggest that these
HODLers were buying as prices were going up, thus raising their
average cost basis. This accumulation likely corresponded to
profit-taking from other entities in the market. As Young Ju has
pointed out, this profit-taking spree lasted for about 18 months in
these past cycles. Related Reading: Bitcoin Crashes To $64,000:
Will This Historical Support Hold? From the chart, it’s visible
that the indicator has once again started showing an uptrend with
the price rally this year. This would suggest that the Accumulation
Addresses are back to absorbing profit-taking from old whales. So
far, this rise has lasted for around four months, which means that
there could still be around another fourteen months of it left, if
the last two cycles are anything to go by. Based on this, the
analyst thinks this latest Bitcoin bull cycle could end up running
into mid-2025. BTC Price Bitcoin has edged close to the $70,000
level during the past day after observing a surge of around 3%.
Featured image from Dall-E, CryptoQuant.com, chart from
TradingView.com
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