CryptoQuant CEO, founder and CEO of on-chain analytics company CryptoQuant, explains that the Bitcoin bull cycle may last up to mid-2020.
The old Bitcoin whales that were able to make a profit lasted for 18 months in previous cycles
The new post Ki Young Ju, the CEO of CryptoQuant and its founder, has talked about a trend that older whales followed when it came to profit-taking in previous cycles.
“Old whales take profits during bull markets,” notes Young Ju. “Their selling brings new capital into accumulation addresses, raising realized prices.” Accumulation Addresses Refer to Bitcoin wallets with no previous history of sales.
These addresses also have a few other conditions, such as they must have at least two deposits and shouldn’t be connected to miners or centralized exchanges. The addresses must also have a minimum balance of 10 BTC and the last transaction made by them should be within the previous seven years.
The Accumulation Addresses reflect those who are perpetual HODLers, and buy only more. They never sell. During bull-markets, these HODLers are the ones who absorb all of the sales as whales suddenly break their silence in order to reap their profits.
CryptoQuant’s CEO, CryptoQuant, has used the CryptoQuant to show this trend. “Realized Price”This metric keeps track of average cost of capital for investors in this group.
This means that the group as a collective is experiencing an unrealized loss. On the other hand, it being under BTC’s value implies these diamond hands are currently carrying profits.
Here is the chart showing the trends in Bitcoin Accumulation addresses over the last decade.
The graph above shows that the price of this cohort has increased over the past two Bitcoin bull runs. It would seem that these HODLers bought as the prices rose, increasing their cost-basis average.
This accumulation was probably the result of other participants in the market taking profits. Young Ju pointed out that this profit-taking frenzy lasted about 18 months during these previous cycles.
From the chart, it’s visible that the indicator has once again started showing an uptrend with the price rally this year. It would appear that Accumulation Addresses have returned to absorb profit-taking by old whales.
According to the two previous cycles, it could be another 14 months before this cycle ends. The analyst believes that this new Bitcoin bull-cycle could last until the middle of 2025.
BTC price
Bitcoin reached a level of $70,000 in the last day, after experiencing a rise of roughly 3%.
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Source: www.newsbtc.com