Following the bitcoin price drop below $60,000, hopes for the btc price to reach a new all-time high, at least in the short term, seem to have faded. However, in the long term, analysts still expect the bitcoin price to recover from here. One of those who believe that the bitcoin-etfs-to-hit-new-lows/” rel=”nofollow”>btc Price CryptoQuant CEO Ki Young is still set to hit a new all-time high, but there is a caveat to this rally.
bitcoin price must stay at $45,000
In a post on x (formerly twitter), CryptoQuant CEO Ki Young x.com/ki_young_ju/status/1820836997487055301″ rel=”nofollow”>revealed bitcoin price remains bullish even after the drop. However, the main level is $45,000, as holding this level will be a determining factor for whether the bearishness continues or if bitcoin manages to reach a new all-time high.
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The reason for the $45,000 warning is bitcoin-miners-in-distress-mass-sell-off-sends-btc-price-tumbling-to-61000/” rel=”nofollow”>levels of miners' profitabilitywhich currently stands at $43,000. This $43,000 is the cost of mining a single bitcoin taking into account all operational costs. This means that as long as the btc price remains above $45,000, miners will continue to make a profit from any btc mined.
However, a price drop below the $45,000 level will initially put the bitcoin price dangerously close to the cost of mining one btc. A further drop could put it below the $43,000 level, at which point it would become unprofitable for miners. bitcoin-miners-realized-550-million-profits-year/” rel=”nofollow”>btc mineand possibly affecting the hash rate.
The CEO acknowledges that some signs remain bearish for the bitcoin price. However, he believes that if the pioneering cryptocurrency is able to hold the $45,000 level without breaking for the next two weeks, then a rally could be underway. Following this, Young believes that the btc price could reach a new all-time high before the end of 2024.
A bearish signal not seen since 2023 returns
The post x that CryptoQuant CEO responded to was from Julio Moreno, who is the director of research at CryptoQuant. In the post, Moreno took a rather bearish stance: x.com/jjcmoreno/status/1820820995956990307″ rel=”nofollow”>Identifying a peculiar bearish signal that had not been seen in more than a year.
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The bull-bear market cycle indicator is one that can signal the return of the bear market. The researcher points to the 2020 COVID sell-off as one of the instances when this indicator turned bearish. Judging by this historical performance, the bitcoin and cryptocurrency market could be gearing up for another extended bear market, which would mean that the market crash is far from over.
Featured image created with Dall.E, chart from Tradingview.com
