Ki Young Ju, the CEO at CryptoQuant and an on-chain analyst, says Bitcoin (BTC) is neutral to short-term bearish for the time being.
There are two major indicators that have been useful in spotting trend reversals in the ongoing bull cycle.
First, whenever the Coinbase premium appeared, which means BTC is trading higher on Coinbase than on Binance, for example, BTC saw bullish momentum. Second, the momentum of Bitcoin strengthened when it saw large outflows from Coinbase.
In the past several days, however, neither of these two indicators have shown any staying power as the metric dipped into negative territory on Jan. 24.
BTC: Coinbase Premium Index (blue). Source: CryptoQuant
When will Bitcoin market sentiment improve again?
Bitcoin will most likely find a renewed bullish rally if the premium on Coinbase consistently appears with large outflows.
The combination of these two indicators would suggest that high-net-worth individuals are accumulating Bitcoin once again. Ki explained:
“I’ll keep my bearish bias until there areTitle: Why one Bitcoin on-chain analyst is flipping bearish on BTC price, for now
Sourced From: cointelegraph.com/news/why-one-bitcoin-on-chain-analyst-is-short-term-bearish-on-btc-price-for-now
Published Date: Sun, 24 Jan 2021 13:13:29 +0000