Bitcoin Bull Market Is Only Starting – Analyst Breaks Down Key Market Drivers

Bitcoin has reached a recent all-time high, tagging $97,900 just hours ago, because the market sentiment stays extremely bullish. This explosive rally has investors questioning how long this uptrend will be sustained and what lies ahead for the market leader. Bitcoin’s recent performance has drawn comparisons to its historic 2020 bull run, sparking excitement amongst traders and analysts alike.

CryptoQuant founder and CEO Ki Young Ju has shared key insights into the driving forces behind this surge. In response to Ju, current market conditions mirror the early stages of Bitcoin’s previous bull cycle.

His evaluation highlights critical data points, corresponding to the behavior of long-term holders and the growing demand from institutional investors, fueling this rally. Ju also identifies the important thing aspects essential to keep up this momentum and propel BTC to higher price levels.

With Bitcoin entering price discovery again, speculation abounds about whether this rally will exceed expectations or face resistance near the psychological $100,000 mark. Because the market navigates this euphoric phase, all eyes are on Bitcoin’s ability to sustain its upward trajectory. Ju’s evaluation provides worthwhile insights for understanding the aspects driving this trend and what could shape the approaching months for BTC.

Bitcoin On-Chain Metrics Support Bullish Sentiment

Bitcoin’s rise has been nothing in need of impressive, and investors remain optimistic in regards to the coming months, buoyed by on-chain metrics that confirm that is just the start of a bigger uptrend. 

CryptoQuant CEO Ki Young Ju recently shared an in depth evaluation on X, explaining the important thing drivers behind Bitcoin’s surge. Ju states that the present market conditions resemble the early stages of the 2020 bull market, a period that ultimately propelled BTC to recent all-time highs.

CryptoQuant Bitcoin Bull-Bear Market Cycle Indicator | Source: Ki Young Ju on X

For months, Ju has been discussing on-chain whale accumulation, a trend many critics dismissed as exaggerated. Nevertheless, the information has proven accurate, and the explanations for the buildup have gotten clearer. 

In response to Ju, the sharp increase in mining costs following the recent halving has created pressure on miners, forcing the worth to rise to keep up profitability. This example has led to a wave of short positions, contributing to a brief squeeze that helps to fuel Bitcoin’s current bull market.

Ju also notes that the last BTC halving cycle saw the bull market take off in Q4, and he believes that whales are unlikely to let this 12 months’s fourth quarter pass without significant movement. As Q4 approaches, the market sentiment stays positive, and it seems that BTC is primed to proceed its upward trajectory, with many expecting recent highs in the approaching months.

BTC Hits ATH Almost Every Day 

Bitcoin has hit an all-time high ten times up to now sixteen days, showcasing incredibly bullish price motion that’s rare for any asset. The worth is now nearing the psychological $100,000 mark, a level that many investors anticipate BTC will break in the approaching days. 

This strong upward momentum signals high confidence out there, but there’s also a risk of a correction. While demand stays high, it’s being met with whales taking profits at key price levels, which may lead to short-term volatility.

BTC reaching new ATH at $97,900
BTC reaching recent ATH at $97,900 | Source: BTCUSDT chart on TradingView

For BTC to proceed its rally toward $100,000, it must hold above the $93,400 mark in the approaching days. If this level holds as support, a surge toward $100,000 would appear imminent, potentially driving much more bullish sentiment and pushing BTC to recent heights. 

Nevertheless, a correction to lower demand levels could occur if BTC fails to interrupt above the $100,000 level and the worth drops below the $93,400 support. In such a case, BTC could retrace to levels around $88,500 and even lower because the market adjusts and whales proceed to lock in profits. The subsequent few days might be crucial for determining Bitcoin’s direction.

Featured image from Dall-E, chart from TradingView

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