Bitcoin has hit a new all-time high, trading at $97,900 just hours ago as market sentiment remains extremely bullish. This explosive rally has investors wondering how long this uptrend can be sustained and what lies ahead for the market leader. Bitcoin’s recent performance has drawn comparisons to 2020’s historic bull run, sparking excitement among traders and analysts alike.
CryptoQuant founder and CEO Ki Young Ju shared key insights into the driving forces behind this wave. According to Ju, current market conditions reflect the early stages of Bitcoin’s previous bull cycle.
His analysis highlights crucial data points, such as long-term investor behavior and growing demand from institutional investors, that are fueling this rally. Ju also identifies the key factors needed to maintain this momentum and propel BTC to higher price levels.
As Bitcoin reenters price discoverySpeculation is rife as to whether this rally will exceed expectations or provide resistance near the psychological $100,000 mark. As the market navigates through this euphoric phase, all eyes are on Bitcoin’s ability to continue its upward trajectory. Ju’s analysis provides valuable insights into understanding the factors driving this trend and what could shape the coming months for BTC.
Bitcoin On-Chain metrics support the bullish sentiment
Bitcoin’s rise has been nothing short of impressive, and investors remain optimistic about the coming months, buoyed by on-chain metrics that confirm this is just the start of a larger upward trend.
CryptoQuant CEO Ki Young Ju recently shared an in-depth analysis on Xwhich explains the key drivers behind Bitcoin’s surge. Ju argues that current market conditions resemble the early stages of the 2020 bull market, a period that ultimately pushed BTC to new all-time highs.
Ju has spent months talking about the accumulation of chained whales, a trend dismissed as exaggerated by many critics. However, the data has proven to be accurate and the reasons for the accumulation are becoming clearer.
According to Ju, the sharp increase in mining costs after the recent halving has put pressure on miners, forcing the price to rise to maintain profitability. This situation has led to a wave of short positions, which has contributed to a short squeeze that is helping fuel Bitcoin’s current bull market.
Ju also notes that during BTC’s last halving cycle, the bull market took off in the fourth quarter, and he believes it is unlikely that whales will let the fourth quarter of this year pass without significant movement. As the fourth quarter approaches, market sentiment remains positive and it appears that BTC is poised to continue its upward trajectory, with many expecting new highs in the coming months.
BTC reaches ATH almost every day
Bitcoin has hit all-time highs ten times in the last sixteen days, showing incredibly bullish price action that is rare for any asset. The price is now approaching the psychological barrier of $100,000, a level that many investors expect BTC to break through in the coming days.
This strong upward momentum indicates high confidence in the market, but there is also a risk of a correction. While demand remains high, it is being met by whales taking profits at key price levels, which could lead to short-term volatility.
For BTC to continue its rally towards $100,000, it must remain above $93,400 in the coming days. If this level holds as support, a surge to $100,000 appears imminent, potentially creating even more bullish sentiment and pushing BTC to new highs.
However, a correction at the lower demand levels could occur if BTC fails to break above the $100,000 level and the price falls below the $93,400 support. In such a case, BTC could return to levels around $88,500 or even lower as the market adjusts and the whales continue to lock in gains. The coming days will be crucial in determining Bitcoin’s price.
Featured image of Dall-E, chart from TradingView