Bitcoin, the leading cryptocurrency, is currently experiencing a prolonged period of sideways movement, according to the chief executive of market intelligence firm CryptoQuant, Ki Young Ju. In a recent post on X, Ju highlighted that if Bitcoin does not initiate a rally within the next two weeks, it will set a record for the longest consolidation period during a halving year.
The halving cycle of Bitcoin takes place every four years, reducing the mining rewards by half. Historically, Bitcoin has surged to new all-time highs following a halving event. Ju is closely monitoring the Coinbase premium, a metric that indicates the price difference between Bitcoin on Coinbase Pro and Binance exchange.
Ju pointed out that whales trading on Binance have prevented Bitcoin from reaching new all-time highs. He mentioned, “Since March, Bitcoin’s price has been volatile. The Coinbase premium has shown significant variances at $53,000 and $72,000, with whales buying at the higher price and selling at the lower price. Additionally, whales on global exchanges have impeded a breakout to new highs and defended the $53,000 level. A near-zero premium could serve as a support or resistance level.”
Currently, Bitcoin is trading at $62,741, showing a slight increase over the last 24 hours. Ju’s analysis underscores the importance of monitoring key metrics and market dynamics to anticipate potential price movements in the cryptocurrency space.
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Image Source: Midjourney
In conclusion, the cryptocurrency market, particularly Bitcoin, is undergoing a crucial phase as it approaches a potential breakout or continued consolidation. By staying informed and analyzing key indicators, traders and investors can make well-informed decisions in this dynamic and evolving market.