After the recent Bitcoin price crash below $60,000, there has been a sense of disappointment among investors as hopes for a new all-time high in the short term have been diminished. However, many analysts remain optimistic about the long-term prospects of the Bitcoin price. One such believer is CryptoQuant CEO Ki Young, who recently shared his insights on the current state of Bitcoin’s price.
According to Ki Young, the Bitcoin price remains bullish even after the crash. However, he highlighted a crucial level of $45,000 that could determine the future trajectory of the leading cryptocurrency. This level is significant because it correlates with miners’ profitability levels, which are currently at the $43,000 mark. As long as Bitcoin stays above $45,000, miners can continue to operate profitably. A drop below this level could spell trouble for miners and potentially impact the overall hash rate.
Despite his bullish outlook, Ki Young acknowledged that there are still bearish signals lingering in the market. He pointed out that if Bitcoin manages to hold above $45,000 for the next two weeks without breaking, a rebound could be on the horizon. In response to a bearish post by CryptoQuant’s Head of Research, Julio Moreno, Ki Young emphasized the importance of monitoring key levels and indicators to gauge the market sentiment accurately.
Moreno’s bearish stance was based on a peculiar signal known as the Bull-Bear Market Cycle Indicator, which has historically foreshadowed extended bear markets. He drew parallels to the COVID-induced sell-off in 2020, where the indicator had turned bearish. This led Moreno to believe that the crypto market might be in for a prolonged downturn, challenging the prevailing bullish sentiment.
The crypto market is currently at a crossroads, with conflicting signals and diverging opinions on the future of Bitcoin’s price. While some analysts like Ki Young remain optimistic about a potential rebound and new all-time high, others such as Moreno warn of a lingering bearish trend. Investors and traders should carefully evaluate the market conditions and be prepared for heightened volatility in the coming weeks. Only time will tell whether Bitcoin can overcome the $45,000 hurdle and pave the way for a sustained upward momentum towards new highs by the end of 2024.
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