Bitcoin (BTC) Market May Not Experience a Massive Dump, Here's Why

Ki Young Ju, founder of the analytics platform CryptoQuant, has identified compelling reasons to believe that the Bitcoin market may not experience a massive dump.

CryptoQuant founder Ki Young Ju has shared his perspective on Bitcoin's market trend following an analysis of the “Buy/Sell Quote Volume Difference” for BTC across all centralized exchanges. This metric showcases the disparities between buy and sell walls on liquid platforms.

Young Ju's analysis revealed that Bitcoin's buy walls across all centralized exchanges are currently strong enough to offset the sell walls. He further strengthens his argument by comparing the 2020-2022 cycle with the current 2023-2024 cycle.

Bitcoin Buy/Sell Wall in the 2020-2022 Cycle

From mid-2020, buy walls (the green areas in the chart below) initially dominated as Bitcoin's price surged to new all-time highs. However, starting in May 2021, sell walls (red areas) thickened, indicating that more traders were trying to sell BTC.

This shift aligned with the initial price correction from around $60,000 to $30,000 before a rally to an all-time high in November 2021. During the recovery phase, sell walls continued to thicken, intensifying until the end of the cycle, with sellers dominating throughout most of 2022.

This period coincided with Bitcoin's drop from approximately $69K to $15K between November 2021 and 2022.

In contrast, the 2023-2024 chart began with the dominance of sell walls (red), but a notable shift has been observed as 2024 progresses.

Specifically, the red area has started to shrink as buy walls grow stronger, indicating increased buying interest. Overall sentiment now appears bullish, with buy walls neutralizing sell pressure in the Bitcoin market. As of October, the Buy/Sell quote volume of Bitcoin across exchanges has flattened.

Is Bitcoin Still in an Uptrend?

This trend highlights a shift toward accumulation and buyer strength. Ki Young Ju used this latest metric to support his belief that Bitcoin is still in an uptrend and that a new all-time high is still possible this season.

In previous commentary, Young Ju expressed a bullish outlook by noting that "ancient whales" have remained largely inactive. His analysis showed no significant recent deposits to exchanges from these whales, suggesting they may be holding back for more favorable market conditions.

Historically, their activity has coincided with Bitcoin's past rallies in 2017 and 2021. However, their activity has been flat this year, even as Bitcoin peaked in March 2024.

notably, Bitcoin reclaimed the $65K mark today after testing the $59K range last week.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.