- Liquidity is crucial. Fresh capital inflow is essential for Bitcoin to recover and resume its bull run.
- 75K Support is key. Analyst’s bullish outlook hinges on Bitcoin staying above the $75,000 price level.
- Volatility to be expected. Past drops show Bitcoin can rebound, but sideways trading or further dips are likely.
With Bitcoin struggling to hold ground at $80,000, currently in the red trading at $79,222, investors are anxious to see if the cryptocurrency can stop its latest slide and begin to recover.
And according to CryptoQuant CEO Ki Young Ju, the key to a turnaround lies in fresh capital flowing into the market. While recent spot trading volume has shown activity, Ju warns that without a significant influx of new money, Bitcoin could remain stuck in a sideways pattern, or worse, face further declines.
He draws parallels to previous periods of high trading volume, stressing that for a sustained price rise, would require new buyers entering the market. Without this, he suggests, a ‘distribution phase’ – where early investors take profits – could put downward pressure on the price even more.
Related: Crypto Analyst Warns: Time to Pull Your Crypto Off Centralized Exchanges
Analyst: Bitcoin’s Bull Run “Not Over” Despite Risks
Despite concerns over potential consolidation, Ju remains bullish on Bitcoin’s long-term outlook, emphasizing that the bull cycle is not over. He reiterated, “I’m bullish. The bull cycle is not over.”
However, he acknowledged the possibility of a 30% drop at some point, saying that if Bitcoin fell significantly below $75K, it would contradict his bullish stance. He wrote, “I didn’t change my stance—I’ve been consistent about the bull cycle and the possibility of a 30% correction.”
Bitcoin’s Past Volatility and 2021 Parallels
Bitcoin did fall by 30% , sparking widespread panic among retail investors. Ju reassured traders, explaining that in 2021, BTC lost 53% of its value before skyrocketing to an all-time high. This historical trend highlights the inherent volatility of the crypto market while supporting Bitcoin’s long-term upward path. The analyst also pointed out that long-term, strategic investors typically outperform reactive traders.
Related: Bitcoin Price Dip Analysis: 30% Drop But CryptoQuant CEO Says It’s “Common” in Bull Cycles
Bitcoin’s Two Possible Market Scenarios
That said, the current market structure suggests two possible scenarios —either Bitcoin continues lurking within this range, awaiting a liquidity-driven breakout, or a lack of fresh capital triggers a more extended bearish period.
With Bitcoin close to a psychologically significant level, all eyes are now on whether new liquidity can drive prices higher or if the market will stay stuck in a holding pattern for the near future.
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