Key Points
- CryptoQuant analyst Ki Young Ju asserts that Bitcoin traders remain in a bull market despite recent price drops.
- Miners’ revenue for Bitcoin has significantly decreased over the last few days.
Bitcoin [BTC], though currently stagnating around the $66,000 mark, continues to hold a positive outlook.
Bullish Sentiment Persists
Analyst Ki Young Ju from CryptoQuant maintains that Bitcoin traders are still within a bull market, despite recent price drops. He bases his optimism on the average entry price for Bitcoin traders being around $47,000. This indicates that while BTC is down around 27% from its all-time high, most traders remain profitable and are not compelled to sell.
Ki Young Ju interprets this data as ongoing bullish sentiment. In previous bull markets, Bitcoin’s price has generally stayed above the traders’ average entry price.
This suggests that many traders are likely waiting for the price to rise again before selling. However, the analyst also recommends caution, suggesting a long-term bullish approach while avoiding excessive risks in the current volatile market.
Long-term Holders and Miners
Most of the addresses holding BTC belong to long-term holders. These are individuals who buy Bitcoin intending to hold it for an extended period, often years or even decades. They are typically less affected by short-term price fluctuations, focusing instead on the potential for Bitcoin’s value to grow over the long haul. This is reflected in the current average entry price.
Another factor that could affect the price of BTC is the state of the industry’s miners. Over the last few days, the daily revenue generated by miners has significantly declined from 53 million to 34 million. If the revenue generated by the miners continues to decline, it will become difficult for the miners to remain profitable.
In such a scenario, they would be forced to sell their BTC holdings, leading to selling pressure on BTC and potentially, a further decline in price.
Impact of Network Activity
Activity on the Bitcoin network can significantly affect the revenue generated by these miners. Analysis of Santiment’s data revealed that the number of active addresses on the network fell from 688,000 to 613,000 over the past month.
The decline in activity and falling interest in Bitcoin’s ecosystem could exert more downward pressure on BTC’s price action on the charts.
