Ki Young Ju, CEO of CryptoQuant, a platform that provides cryptocurrency market data, believes on-chain indicators are suggesting Bitcoin ($BTC) bull run is over. He further mentions that for the next 6 to 12 months, price of Bitcoin is expected to follow bearish or sideways trends. Moreover, liquidity for Bitcoin has dried up because almost $1 billion have been pulled out by the investors in a single week. Due to low prices, investors are selling their BTC as they are not seeing any bullish momentum in the crypto market in the near future. Due to this they are not keen to invest in Bitcoin in the coming days.

Ki Young Ju Applies PCA to Calculate Moving Average of Bitcoin

CEO of CryptoQuant applies PCA, Price Change Average, to calculate the moving average of BTC. At the end of January, Bitcoin touched the highest price, which was $1,09,000 and after that it is seeing bearish momentum. The current price of Bitcoin is $82,984.43 after showing sideways movement in the $80-85k region.

As BTC is seeing bearish momentum, people are more interested in knowing about the behaviour of the market. Moving averages are helpful to generate buy and sell signals.

Ki Young applies PCA to on-chain metrics such as MVRV (Market Value to Realized Value ratio), SORP  (Spent Output Profit Ratio), and NUPL (Net Unrealized Profit\Loss) to evaluate the performance of BTC. The ratio of MVRV shows if the cryptocurrency is undervalued or overvalued. Investors can get an awareness about the market by looking at these metrics. Users can know the sentiment of the market and this identification of the sentiment makes them able to decide whether to invest at this crucial time of the crypto market or not. With the knowledge of the market, investors can create buying or selling opportunities for themselves.

This BTC Indicator was Incorrect in 2020

Prediction about market trends has always been a matter of great significance. It is also challenging to predict market trends as it is a matter of great experience. There are many factors on which our crypto market depends, and it is never easy to predict the bearish or bullish momentum of Bitcoin.

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The same indicator about the cryptocurrency market in 2020 was incorrect. It can be concluded that predictions can go wrong and there can be seen bullish momentum in Bitcoin in coming days too.