CryptoQuant CEO Ki Young Ju has expressed that the Bitcoin bull cycle has concluded, based on an analysis of market capitalization and demand.
Market Analysis of Bitcoin
Ju claims that his conclusions are based on the concept of 'realized cap,' which measures the total amount of capital entering the Bitcoin market. When BTC enters a wallet, it is considered a buy, allowing for an estimation of the average Bitcoin price at which each wallet purchased its coins.
Signs of a Bearish Trend
Ju adds that market cap is determined by the last traded price, influenced by the balance of supply and demand on exchanges. When selling pressure is too high, large purchases are unable to shift the price. Under current conditions, even significant purchases cannot make a difference as major buyers are overwhelmed by sellers.
Outlook for Bitcoin
Ju warns that a short-term price rally is unlikely, as selling pressure may ease, but historically, true reversals take at least six months. Currently, Bitcoin is trading at $83,006.
According to Ki Young Ju, the Bitcoin market is facing a bearish trend, with short-term price increases appearing improbable.
