Bitcoin Rebound Hinges On 3 Key Triggers, Expert Says

Ki Young Ju, founder of CryptoQuant, has identified three critical factors that could spur a Bitcoin price recovery. The analysis comes as BTC currently trades near $96,000, a decrease from $105,800 earlier this week and a 10% drop in three days.

The first trigger is the realized cap, which has reached a record high of $1.12 trillion. This metric signifies continued investment, as new buyers enter the market at elevated prices despite recent price declines. Estimated inflows over the last week alone range from $2.6 to $3.1 billion, a historically significant pattern.

A second trigger involves the activity of long-term Bitcoin holders, often referred to as “OG whales.” According to data from Glassnode, these holders have moved an average of 24,000-27,000 BTC per day this month, up from 12,500 BTC/day in July. A significant change observed is the slowing of large transfers from wallets holding Bitcoin for over seven years.

The third trigger is tied to broader macroeconomic conditions. Ju notes that Bitcoin’s recent decline coincided with increased dollar strength and rising real yields, which put downward pressure on risk assets. He suggests that even a slight easing of macroeconomic tightening could provide the necessary impetus for a Bitcoin rebound.

Ju believes that the current market structure remains intact, with the necessary conditions for recovery now visible through on-chain data and macroeconomic trends. The combination of sustained inflows and reduced selling pressure from long-term holders could be sufficient for a price turnaround.

Disclaimer: The opinions expressed are those of the writer and do not represent the views of U.Today. U.Today is not responsible for financial losses incurred through trading cryptocurrencies. Readers are advised to conduct their own research and consult with financial experts before making investment decisions.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.