According to CryptoQuant Founder and crypto analyst Ki Young Ju, at last, Bitcoin holders who have bought during the 2021 bull market, are at their break-even points. Referring to the fact that BTC is once again above $48,000 in a recent X post, Young Ju noted that these investors are now closer to being back in the green after nearly three grueling years.
Young Ju congratulated those holders with “diamond hands” for having been able to hold to their positions throughout this extended bear market and period of capitulation. Now, loyalty and belief in Bitcoin might start paying off.
A recent analysis appears to affirm that BTC is in the course of a bull market and that it is moving to propose that the cryptocurrency seems to be in the course of a shift toward a new bull market. The analysis looked at BTC long-term holders’ trends targeting the “Supply Last Active” (SLA) 1+ year cohort.
This cohort has been the cohort of BTC accumulation within a year or more. These are the true believers in the asset’s long-term trajectory. The SLA 1+ year supply hit the level of 71% in November 2022. This actually shows how this cohort was aggressively lapping up Bitcoin in that bear market. And as prices start rising, these steadfast holders tend to take profits.
The SLA 1+ year supply had just dropped most recently to 69.2%, with BTC crossing above $46,000. Historically, a declining SLA supply has preceded massive bull runs as long-term holders’ selling has provided the rocket fuel for further gains. The continuation of the trend, the analysis says, would mean that a huge upside can be foreseen ahead. Close monitoring of the activity of these holders is seen as potential valuable input on where Bitcoin prices can head next.
Bitcoin: Bullish Price Targets
Young Ju has himself set a bullish price target for Bitcoin at $112,000 in 2023. He believes this will be driven mainly by the spot ETF inflow, estimated to be around $9.5 billion a month, which could translate into significant increases in Bitcoin realized capitalization across the year.
In fact, Young Ju assumes continued outflows from Grayscale Bitcoin Trust and therefore said that, in his view, Bitcoin could reach $104,000 to $112,000 by December 2023, depending on the maintained ratio between the market and realized values of Bitcoin.