Originally published on: May 31, 2024
The Crypto market seems to be mirroring its mid-2020 performance, according to CryptoQuant CEO Ki Young Ju. Recent findings suggest a surge in Bitcoin accumulation and on-chain activity, reminiscent of the phase that propelled BTC to $64,000 by April 2021.
Despite the low price volatility, Ki’s analysis indicates a substantial influx of new whales into the BTC market. While this signals potential accumulation and increased market interest, the community’s response to the data varies widely.
Some speculate whether Bitcoin is on the brink of a breakout, while others question the lack of price movement despite significant accumulation and ETF inflows.
In 2020, Bitcoin traded around $10,000 for an extended period, accompanied by a surge in on-chain activity attributed to OTC deals. This accumulation phase led Bitcoin’s price to soar to nearly $29,000 by the year-end.
Drawing a comparison between 2024 and 2020 market dynamics, Ki’s analysis suggests a striking resemblance between the two periods, hinting at a possible upcoming bull market and heightened expectation among investors.
Industry analysts believe that Bitcoin is approaching its last resistance level of $69,000 before setting new all-time highs, echoing the trend seen during the 2021 bull run.
Despite ongoing speculations fueled by daily billion-dollar BTC accumulation, expert opinions describe the current low volatility as a positive sign of stable price action around previous ATHs.
As the crypto landscape evolves rapidly, market participants are keeping a close watch on Bitcoin’s accumulation phase, drawing parallels to historical trends and anticipating potential price movements ahead.