Bitcoin Bottom In, On Chain Analyst Calls Out “Bull Opium”

Illustrated by a series of Tweets, Ki Young Ju, founder and CEO of on-chain analytics firm CryptoQuant said that current metrics could signal an end of the bear-market.

In an explanation to his Twitter followers, the on-chain analyst points to Bitcoin’s accumulation level which is currently the highest it has been in the last seven years. In other words, the number of Bitcoins held for a minimum period of six months is peaking according to Ju’s data. He said:

“Over 6-month-old Bitcoins now take 74% of the realized cap. It was 70%, and 77% at the last bottoms in 2019, and 2015 respectively. Imagine you buy Bitcoins and do nothing over six months. You know how hard it is…”

The Cryptoquant founder CEO detailed:

“It’s not just about Bitcoin supply but realized capitalization. I meant ‘over six-month-old Bitcoins take 74% of the realized cap, which means over six-month-old unmoved Bitcoins take 74% of market cap in terms of PnL realization.’”

Adding to his conviction that upward movement could be setting in soon, Ju shared what he called “Bull Opium.” He highlighted:

“BTC price now is close to the estimated entry price of institutional investors who have been using Coinbase services like prime brokerage, custody, etc.

If you still believe institutions drive this market, this bull opium could work for you.”

Looking at the graph below shared by Ju, you will see that when the lines of Coinbase Outflow and BTC price touch, this has historically ignited a new bull run.