It’s no secret that we’re in the middle of an extremely turbulent and volatile period for the crypto markets. Major nations like China are imposing harsher restrictions on cryptocurrency trading and mining while eccentric billionaires lambast bitcoin for its carbon footprint.
For Ki-Young Ju, the CEO of South Korean on-chain analytics firm CryptoQuant, we are now in a bear market.
Bear Market Confirmed
The bellwether cryptocurrency continued its price decline into the new week, sliding to the $32,000 zone earlier today. As investors grapple with the current short-term bias strife in the bitcoin market, Ki-Young Ji is suggesting that bulls should brace for the worst.
“I hate to say this, but it seems like the $BTC bear market confirmed,” the CEO tweeted. He explained that there are numerous big holders presently sending bitcoin to exchanges, which is an indication of whale capitulation.
Ki-Young goes on to note that while he has relied on this particular indicator for years, a single indicator cannot tell the future of the bitcoin price for sure as anything can happen. “I’m just saying, this has been a pretty good indicator to determine a bull/bear market for me,” he summarized.
This depressive bitcoin trend comes as another bearish technical formation is confirmed — which has some traders skittish.
More Doom And Gloom
Quantum Economics Mati Greenspan observed that the dreaded death cross — which is considered a fairly accurate predictor of bear markets — has appeared on the bitcoin charts. In case you didn’t already know, a death cross forms when bitcoin’s short-term moving average (50-day) crosses below the long-term moving average (200-day).
The price of the flagship cryptocurrency has plunged from its all-time high of almost $65K in April to the $32,000 level today. The correction also took cues from news of an intensifying crypto crackdown in China. In particular, the People’s Bank of China (PBoC) prompted banks and financial institutions to stop providing cryptocurrency services such as trading, opening accounts, clearing and settlement.
The confluence of these bearish indicators has multiple pundits predicting that bitcoin could tumble to $24,000 in the near future. Nevertheless, bitcoin’s macro outlook remains bullish as analyst PlanB says BTC hitting $135,000 by the end of 2021 would be the “worst-case scenario”.