Ki Young Ju, CryptoQuant CEO, has compared the present Bitcoin whale accumulation to that of 2020 and predicts the possibilities of a bullish trend.
Ki Young Ju, founder and chief executive officer of CryptoQuant, has detected a remarkable parallel between the current state of the Bitcoin market and that observed in the middle of 2020.
Ki’s research, published on X on May 31st, unveiled relatively high on-chain activity and a significant surge in Bitcoin accumulation—a resemblance to the accumulation phase of 2020, which caused BTC to soar to $64,000 by April 2021.
“Same vibe on #Bitcoin as mid-2020. Back then $BTC hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals. Now, despite low price volatility, on-chain activity remains high, with $1B added daily to new whale wallets, likely custody.”
Ki failed to respond to Cointelegraph’s request for comment before the publication deadline.
Whales of Bitcoin: High activity and minimal volatility
Although price volatility is relatively low, the comparative chart titled “BTC: Realized Cap for New Whales” by Ki illustrates substantial inflows into Bitcoin. Although the pattern suggests that whales may be accumulating Bitcoin and increased market interest ensued, community reactions to Ki’s findings were diverse.
One X user questioned whether Bitcoin’s “breakout is still several months away.” Others, however, voiced skepticism, observing that despite accumulation and ETF inflows, the price is not “going up.”
The accumulation era of Bitcoin in 2020
For several months in 2020, the price of Bitcoin remained stable at around $10,000. Ki subsequently ascribed the surge in on-chain activity to over-the-counter (OTC) transactions.
Due to this phase of accumulation and increased activity, the price of Bitcoin eventually peaked at approximately $29,000 by the end of 2020.
An analysis of Ki’s 2024 vs. 2020 chart reveals that the current market dynamics resemble those preceding a previous bull run, establishing a comparable historical parallel and generating optimistic anticipations.
Implications for the forthcoming market
The Bitcoin price, according to crypto analysts, is battling its “last resistance” of $69,000 before reaching new all-time highs (ATHs), the highest point being attained during the bull run of 2021.
In contrast to the ongoing daily accumulation of $1 billion BTC, which has prompted community speculation, a pseudonymous crypto analyst named CryptoCon recently characterized the current low volatility surrounding previous ATHs as “healthy price action.”
