In January, a remarkable rally began in the cryptocurrency markets. But the momentum of the rally is already lost. However, Ki Young Ju, co-founder and CEO of Cryptoquant, believes that Bitcoin (BTC) has already entered a bullish phase, a bull season. believes.
According to the analyst, indicators based on PnL show that most traders are still “at a loss” and the majority of market participants do not want to sell at a loss.
According to Young Ju, the selling pressure in the market may be part of the liquidation process that started due to the bankruptcy of big funds or crypto-related companies. In addition, assets seized by the state are also sold on the market almost instantly.
On the other hand, according to the famous CEO, although Bitcoin is currently in an early bullish phase, macro risks still dominate the industry and increasing liquidation, bankruptcy, etc. number will certainly lead to an increase in sales pressure. If the market is not ready for this, we will see the continuation of the long-term downtrend that started in 2021.
On the on-chain side, Bitcoin whales didn’t even move to sell their funds at a good price in the market, suggesting that they were either aiming much higher or holding their holdings at a substantial unrealized loss. One way or another, the absence of Bitcoin selling on the whale’s side is a bullish factor that allows the market to move upwards without having to deal with pressure from investors.
As a result, the momentum we gained at the beginning of this month has been lost and the industry is waiting for a new wave of investment to move forward.
You can follow the current price action here.