New York, NY – Despite a recent price drop, the outlook for Bitcoin remains positive, with traders still believed to be in a bull market. This sentiment is based on the analysis of CryptoQuant analyst Ki Young Ju, who notes that the average entry price for Bitcoin traders is around $47,000, indicating that most traders are still holding onto profits and haven’t been pressured to sell.
Ki Young Ju’s interpretation of the data suggests a sustained bullish sentiment, as historical trends show that in bull markets, the price of Bitcoin tends to remain above the average entry price of traders. However, he advises caution in the current volatile market, advocating for a long-term bullish approach while avoiding excessive risks.
The majority of Bitcoin addresses holding the cryptocurrency are long-term holders, who are less affected by short-term price fluctuations and focus on the potential for long-term growth in Bitcoin’s value. This is evidenced by the current average entry price for Bitcoin.
Another factor that could impact Bitcoin’s price is the decline in miners’ revenue over the past few days, from 53 million to 34 million. If this trend continues, miners may struggle to remain profitable, potentially leading to selling pressure on Bitcoin and a further decline in price.
The activity on the Bitcoin network plays a significant role in miners’ revenue, with a decrease in active addresses from 688,000 to 613,000 in the past month. This decline, coupled with waning interest in Bitcoin’s ecosystem, could exert more downward pressure on the cryptocurrency’s price.
Overall, while the recent price drop may have raised concerns, the analysis suggests that Bitcoin traders are still optimistic about the cryptocurrency’s long-term prospects. As the market continues to evolve, it will be essential for traders to monitor key indicators and trends to make informed decisions regarding their Bitcoin holdings.