CryptoQuant CEO Reverses Caution Amid Bullish Signs On Bitcoin Chart

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  • CryptoQuant analysts express caution, but others contradict this outlook in Bitcoin price. As a result, CryptoQuant’s CEO apologized to the community for the confusion.
  • Over 25,000 BTC dormant for years suddenly became active, signaling renewed interest in BTC.
  • Optimism still persists for this cycle’s continuation, as long-term holders retain significant Bitcoin amounts.

Since Donald Trump chose not to mention cryptocurrency in his inauguration speech, Bitcoin price has remained relatively stagnant, and skipped a rally seen in late 2024.

This lack of movement has left even seasoned experts feeling uneasy. The fear of potential losses created confusion amongst the community.

This was further boosted by analysts who have been sharing their opinions, many of which carry cautionary signals on the QuickTake of the CryptoQuant platform.

The CEO of CryptoQuant also expressed his concerns on X, urging caution among investors.

However, some analysts, dissatisfied with this cautious outlook, presented their analysis on the same QuickTake. These analysts contradicted the CryptoQuant CEO’s warning. As a result of this confusion, the CEO apologized to the community.

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Source: X

Despite the warnings, there remains a sense of optimism surrounding a Bitcoin price rally. Since, the anticipated momentum has yet to materialize, many believe it could still help reach the ambitious targets hinted at in reports from major industry players released in late 2024.

As the market continues to evolve, all eyes are on BTC to see if it can break through the current stagnation range of $100K To $109K.

Previously, CryptoQuant Analyst & the CEO Suggested Caution For Bitcoin Price

This caution began following Donald Trump’s inauguration, Bitcoin price experienced a significant sell-off from its recent all-time high of $109K. The cause was the absence of any mention of “cryptocurrency” in his speech.

This left investors feeling uncertain and triggered a wave of cautionary analyses across social media.

One analyst from CryptoQuant suggested that the momentum of the rally might be coming to an end. He based this analylsis on historical trends observed in Binance’s Bitcoin funding rate, indicating that he is hesitant to place bets on the current second phase of the rally.

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Source: X

Instead, he prefers to wait for the third phase to begin, having identified three critical phases during the 2020-2021 bull run. His analysis served as a cautionary flag for investors at that time.

Shortly after this cautionary insight, the CEO of CryptoQuant took to X to echo similar sentiments, urging crypto participants to exercise caution, particularly those using leverage.

He pointed out that Bitcoin price had reached a juncture where it could either pull back or trade sideways for an extended period.

While he also acknowledged in the post that on-chain indicators remain bullish, he still expressed uncertainty about the continuation of the bull cycle.

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Source: X

In the short term, he believed that Bitcoin price was unlikely to rise, however, others disagreed.

Analysts’ Optimistic Theories Flipped CryptoQuant’ Pessimistic Cautionary Theories

The undeniable fact is that after Bitcoin price surged past $109,000 for the first time to set a new all-time high, its upward momentum has since slowed. Its price continues to hover a few thousand above $100,000 mark.

Despite this pullback and the numerous warnings circulating in the community, one analyst remains optimistic.

He pointed out that examining the UTXOs of holders who have maintained their positions for over six months reveals that they still hold significant amounts of BTC.

This suggests that the current cycle is still in play and could extend the Bitcoin price rally.

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Source: X

He further emphasized that for those using BTC as a long-term store of value, they must keep sticking to a long-term holding strategy as it still remains a sound approach.

Another analyst buzzed in, noting that while demand for on-chain activity typically spikes during periods of high price volatility, that is not the case at the moment.

In fact, on-chain activity for transactions up to $10K has fallen to 19.34%. This shows that retail activity is low compared to the current volatility.

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Source: X

Currently, retail activity remains subdued after peaking in December, followed by a period of consolidation.

This suggests that despite the new all-time highs, the on-chain structure is not “stretched,” which could favor further upward trends in Bitcoin price.

Adding to the optimism, another analyst reported that over 25,000 BTC, dormant for 5 to 7 years, suddenly became active last night. This development indicates that there is still optimism in the rally.

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Source: X

Interestingly, just a day before this, CryptoQuant CEO Ki Young Ju had expressed caution. However, after witnessing a wave of optimistic theories that contradicted his earlier stance, he reversed his position.

Ki acknowledged that the data he shared contained errors and admitted that Bitcoin price remains bullish. He apologized for the confusion his previous comments caused in the community, stating that it was a mistake to express such pessimism.

Ki Young Ju’s recent X post says:

”This was a data error. #Bitcoin remains bullish. I sincerely apologize for the confusion. The previous tweets have been deleted. Details are in the thread.”

Also, in a move to clarify his stance, he deleted all previous tweets that contributed to the misunderstanding.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

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