Emerging data from Bitcoin’s market activity has motivated investors to doubt the future stability of its rising value. According to CryptoQuant CEO Ki Young Ju the Bitcoin bull cycle has reached its end based on both on-chain analytics and liquidity signal changes. The influx of stablecoins together with institutional involvement suggests Bitcoin might experience a price increase soon.
Bitcoin Volatility Raises Questions on Bull Cycle
Bitcoin’s price movements have sparked uncertainty in the cryptocurrency market, with recent fluctuations causing speculation about the end of its bull cycle. CryptoQuant CEO Ki Young Ju stated on March 18 that Bitcoin’s bull cycle has concluded, citing key on-chain metrics as indicators of a potential market slowdown.
Cryptocurrency experienced a slight decrease of 1% as it traded at $83,179 before this writing. The Bitcoin price has stayed confined to $80,000-$85,000 during the past week which gives investors reason to doubt upcoming price movements.
The new liquidity flow continues to decrease and major Bitcoin owners choose to sell their assets at lower prices according to Young. The analyst mentioned using Principal Component Analysis (PCA) to analyze market trends through the assessment of MVRV SOPR and NUPL on-chain metrics. Application of the 365-day moving average data suggests changing market attitudes which indicate probable declining or neutral trading conditions during the following 6-12 month period.
Stablecoin Inflows Indicate Renewed Market Liquidity
The ongoing stablecoin inflows shown in Matrixport data disprove pessimistic Bitcoin price predictions. Both Tether (USDT) and Circle (USDC) maintained continuous capital streams as reported on March 18 which demonstrates market liquidity growth.
Market data about stablecoin issuance reveals ongoing investor interest in bringing funds to the crypto sector during this period of price fluctuation. Market entry preparations by traders using stablecoins imply an upcoming positive effect on Bitcoin price.
Institutional Interest in Bitcoin Remains Strong
Postponing judgments about Bitcoin’s direction institutions continue to intensify their financial commitments. Japan-based Metaplanet announced on March 18 to buy 150 Bitcoins with a value equivalent to $12.5 million as part of its institutional treasury plan. The deal demonstrates institutional involvement continues to rise despite market price fluctuations.
MicroStrategy continued its Bitcoin buying spree under the leadership of Michael Saylor by purchasing 130 BTC for $10.7 million. The Singapore Exchange (SGX) moves forward with Bitcoin futures contracts as it follows the rising institutional investor interest in Bitcoin.
Technical Analysis Points to Potential Price Recovery
The present Bitcoin price data shows analysts that momentum may shift against its ongoing price decline. The stock analysis conducted by Stockmoney Lizards on March 19 shows Bitcoin exists inside a price zone that produces successive falling peaks followed by falling valleys. The pattern in the daily timeframe shows an upward diverging trend which implies that Bitcoin may start to regain its value.
The market forecasts an initial temporary decrease to approximately $70,000 before most traders agree that prices should accumulate below $80,000. Bitcoin can initiate a price boost because of continuous institutional investments and rising stablecoin market liquidity while staying supported at current levels.
The short-term Bitcoin price activity indicates volatility yet stablecoin market conditions along with institutional buy-in and technical signal indicators suggest an upcoming price recovery in the market. Observers within the market will track these variables throughout the upcoming weeks because they want to understand where Bitcoin is heading.
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