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, at least for the time being.
Young Ju shared this perspective on X today after analyzing the âBuy/Sell Quote Volume Differenceâ for Bitcoin across all centralized exchanges. This metric highlights the difference between buy and sell walls on liquid platforms.
The industry analyst noted that Bitcoinâs buy walls across all centralized exchanges are currently robust enough to offset the sell walls. He strengthened 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 Bitcoinâs 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 Bitcoinâs 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 leveraged this latest metric to bolster his belief that Bitcoin remains in an uptrend and that a new all-time high is still within reach this season.
In earlier commentary, Young Ju emphasized a bullish perspective by noting that âancient whalesâ remained inactive. His analysis showed no significant recent deposits to exchanges from these whales, suggesting they may be waiting for more favorable market conditions.
Historical trends link their activity to Bitcoinâs past rallies in 2017 and 2021. However, their movements have remained flat, 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.
