As Bitcoin’s price made a new 2023-high above $26K price level following the release of CPI data, it has sparked signs of an upcoming bull run in the crypto market by Q1’s end. However, the BTC price has met a sharp rejection near $26.4K, which develops fear among investors of an upcoming bearish rally. As a result, investors are now wondering if Bitcoin’s massive surge is a sign of a crypto bull run or if a bearish rally is waiting on the way.
Crypto Bull Run May Not Happen Soon
Bitcoin has surged to a nine-month high above $26,000 despite the banking crisis in the United States and the latest inflation data. However, the founder of Paxful, Ray Youssef, remains skeptical of the uptrend. In a tweet on March 15, he expressed doubts about the recent surge, describing it as “weak.”
Although Bitcoin’s value has increased, Youssef believes the upside momentum is weak due to the low trading volumes accompanying the recent price surge. Trading volume is an essential indicator of participation and interest among traders, and its low levels may indicate a lack of enthusiasm for Bitcoin’s recent gains. He stated:
“This btc pump has low volume, even the ordinals pump had more volume. I would beware and take a bit of profit. The empire shall continue striking back hard. Buy back later and keep a 2-year time frame always.”
Hence, a downward projection is anticipated in the crypto market, extending the waiting period for a bull run.
Crypto Market Reacts to BTC’s Price Trend
In the last 24 hours, Bitcoin’s value has dropped below $25,000, coinciding with an increase in on-chain activity from large cryptocurrency holders known as “whales.”
Santiment, an on-chain analytics company, has reported a significant surge in whale activity, reaching its highest point in four months. The “whale transaction count” indicator, which tracks transfers worth at least $1 million on the Bitcoin blockchain, shows a significant increase in such transactions.
Although the current situation is not certain, the accompanying price trend may provide some insight into the recent increase in whale activity. For instance, during a previous price drop about a week ago, whales carried out a significant number of transfers. Following this surge in activity, the asset hit a local low before rising sharply, indicating that these transactions were likely made to accumulate Bitcoin at low prices.
However, in the current situation, the asset’s value has declined since the spike in whale transactions, with Bitcoin’s price dropping below the $25,000 level. This suggests that a considerable portion of these recent transactions may have been made for selling purposes. Hence, a further uptick in whale activity may halt the potential crypto bull run.