8 August 2024
Following the Bitcoin price crash below $60,000, hopes for the BTC price to reach a new all-time high, at least for the short-term, seem to have been shattered. However, over the long term, analysts still expect that the Bitcoin price will still rebound from here. One of those who believe that the BTC price will still reach a new all-time high is CryptoQuant CEO Ki Young, but there is a caveat to this rally.
Bitcoin Price Must Hold $45,000
In an X (formerly Twitter) post, CryptoQuant CEO Ki Young revealed that the Bitcoin price remains bullish even after the crash. The major level is the $45,000 level, though, as holding this level will be a defining factor for whether the bearishness continues or if Bitcoin makes its way to a new all-time high.
The reason for the $45,000 caveat is miners’ profitability levels, which are currently sitting at $43,000. This $43,000 is the cost to mine a single Bitcoin by taking into account all of the operating costs. This means that as long as the BTC price remains above $45,000, miners remain in profit from any mined BTC.
However, a fall in price below the $45,000 level will initially put the Bitcoin price dangerously close to the cost of mining a BTC. Further decline could put it below the $43,000 level, at which time it would become unprofitable for miners to mine BTC, and possibly affecting the hash rate.
The CEO recognizes that some signals are still bearish for the Bitcoin price. However, he believes that if the pioneer cryptocurrency is able to maintain the $45,000 level without breaking for the next two weeks, then a rebound could be in the works. Following this, Young believes that the BTC price could reach a new all-time high before 2024 ends.
Bearish Signal Not Seen Since 2023 Returns
The X post which the CryptoQuant CEO was responding to was from Julio Moreno, who is the Head of Research at CryptoQuant. In the post, Moreno took a rather bearish stance, identifying a peculiar bearish signal which had not been seen in more than one year.
The Bull-Bear Market Cycle Indicator is one that can signal a return of the bear market. The researcher points at the COVID sell-off of 2020 as one of the instances when this indicator has turned bearish. Going by this historical performance, the Bitcoin and crypto market could be gearing up for another extended bear market, which would mean that the market decline is far from over.