Bitcoin's Next Rally Will Be Different
CryptoQuant's CEO Ki Young Ju believes Bitcoin is due for a milder bull run, predicting a rally of 3-to-5x rather than another 10x-plus parabolic run. He cites the growth in the market and the increasing presence of institutional buyers as reasons for this shift.
The PnL Index, which tracks aggregate holder profitability, shows that cycle tops and bottoms are forming at higher profitability levels than before. This indicates that the extremes of previous cycles are narrowing.
Bitcoin has already cleared the $76,000-$81,000 zone where long-term holders had been selling heavily, with CryptoQuant putting the next resistance at $88,000 to $90,000.
CryptoQuant's research suggests that Bitcoin is still in an upward trend, with on-chain indicators turning bullish in mid-August. The firm also notes that BTC has closed above its 365-day moving average near $80,500 for the first time since March 2023.