According to the CEO of CryptoQuant, Bitcoin has reached the peak of its bullish cycle, and the market is expected to experience bearish or sideways price trends in the upcoming months.
In a recent update, the CEO forecasts that over the next six to twelve months, Bitcoin (BTC) will likely face “bearish or sideways price action.” To back up his assertion, he shared a historical chart showing the cyclical signals of BTC’s profit and loss index from 2014 to 2024.
As of now, Bitcoin has declined nearly 0.8% in the last 24 hours of trading, with the largest cryptocurrency by market cap currently priced at $82,752, as reported by crypto.news. Over the past month, Bitcoin has seen a 15% decrease in value.
Massive whales liquidating Bitcoin in large quantities
In another post, the CEO provided his insights using the Principal Component Analysis method to assess on-chain metrics such as Market Value to Realized Value Ratio and Spent Output Profit Ratio, factoring in Net Unrealized Profit/Loss. This analysis aimed to establish a 365-day moving average to pinpoint turning points within the one-year trend.
“Every on-chain metric indicates a bearish market. As fresh liquidity diminishes, new whales are unloading Bitcoin at lower prices,” he remarked in his analysis.
Shortly after his analysis, a whale was identified on-chain closing its short Bitcoin position, recording a profit of $4.06 million within just three days. This whale is also known for initiating a high-leverage Ethereum (ETH) position worth approximately $200 million on March 12, which resulted in a $4 million loss for the platform.
Reported data shows that the whale deposited about $17.82 million in USD Coins (USDC) to Hyperliquid over three days, utilizing a 40x leverage to short BTC. The address has since closed all positions and withdrawn approximately 21.88 million USDC back to its wallet.
After liquidating its positions, the whale allocated 6.11 million USDC to purchase 3,202 ETH and also traded 3.28 million USDC for 1,040 PAXG (PAX Gold) tokens.
Recently, traders have observed a surge of whales taking substantial long and short positions with high leverage on Hyperliquid. On March 17, an anonymous whale attracted attention from crypto traders for initiating a short position approximating $450 million in Bitcoin at 40x leverage.