After the recent Bitcoin price crash below $60,000, the hopes of the cryptocurrency reaching a new all-time high in the short term seem to have been dashed. Many analysts, however, are still optimistic about the long-term prospects of Bitcoin. One such believer is CryptoQuant CEO Ki Young, who remains bullish on Bitcoin’s price even after the crash. According to Young, a crucial level to watch is $45,000, as it will determine whether Bitcoin continues its bearish trend or bounces back to reach a new all-time high.
The $45,000 level is significant because it aligns with miners’ profitability levels, which currently stand at $43,000. This means that as long as the Bitcoin price remains above $45,000, miners will remain profitable. However, if the price falls below this level, miners could start operating at a loss, potentially impacting the overall hash rate. Young cautions that while there are still bearish signals in the market, maintaining the $45,000 level for the next two weeks could pave the way for a significant rebound in Bitcoin’s price.
On the other hand, Head of Research at CryptoQuant, Julio Moreno, has taken a more bearish stance on Bitcoin’s future. Moreno points out a bearish signal that has not been seen in over a year—the Bull-Bear Market Cycle Indicator. This indicator, historically, has signaled the beginning of extended bear markets, as seen during the COVID sell-off of 2020. If this indicator is to be believed, the cryptocurrency market might be in for a prolonged period of decline, casting doubt on the possibility of Bitcoin reaching a new all-time high in the near future.
The future of Bitcoin’s price remains uncertain following the recent crash. While some analysts like Ki Young are hopeful for a rebound, others like Julio Moreno are more cautious about the potential for a bear market. As investors navigate these uncertain waters, it is crucial to stay informed and make well-informed decisions based on both bullish and bearish perspectives in the market.
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