Buy or sell? Here’s what Bitcoin investors should ideally be doing now

Lavina Daryanani
Source: IG

Several technicals have been depicting that Bitcoin is pretty close to its cyclic bottom. Right from the historical liquidity zone to the Mayer Multiple band readings, most of the indicators currently portray the range in and around $20k as the floor for this cycle.

Honor Bitcoin’s bottoming out phase?

Quite recently, the analytical platform CryptoQuant’s CEO Ki Young Ju took Twitter to reinforce the same opinion. Per the exec, Bitcoin is “getting close” to the cyclic bottom. Using the UTXO age bands as the base of his argument, he went on to outline how the unspent transaction outputs more than 6 years old currently account for 62% of the realized cap.

The UTXO, as such, takes into account the average entry price for each generation of Bitcoin investors. Simply put, it essentially tracks the potential price level at which long-term HODLers deposit their BTC.

Interestingly, during 2020’s sell-off period too, this indicator crossed the said threshold, and right after that, Bitcoin stepped into its bullish cycle that extended until 2021.

Alongside, it is interesting to note that Bitcoin’s accumulation phase is currently going on. The last bull run was, as such, instigated by institutions who piled up Bitcoin in the current $25k-$30k range, and per Young Ju, it’s “pretty obvious” that Bitcoin is in an accumulation phase at the moment too.

The CryptoQuant exec, however, went on to provide the disclaimer that the macro outlook is “not good” for the next few months. Outlining how it’s difficult to catch the falling knife, he asserted,

As an ordinary investor, knowing when the macro becomes stabilized is harder than running on-chain crystal balls to get clues for fundamentals and insiders.

With its 9th consecutive red weekly close, Bitcoin ended up extending its record-breaking losing streak. Over the past 60 days, the king-coin has shed approximately 2/5th of its value and is already trading at a discount of around $30k. A few dollars up or down wouldn’t matter over the long run. So, in Young Ju’s words, “Why not buy” now?!