CryptoQuant CEO Ki Young Ju pointed to a reversal indicator that allows buying Bitcoin at the ‘global bottom’.
How to buy $BTC at the global bottoms:
1. $BTC drops hard over -30%
2. All Exchange Inflow Mean (MA7) spikes over 2.5 BTC
3. The indicator cools down
4. ALL-IN $BTC
5. Become a billionaire and give a tip to @cryptoquant_comChart 👉 https://t.co/jnuMtC7znJ pic.twitter.com/DMsA89XKOI
— Ki Young Ju 주기영 (@ki_young_ju) March 23, 2021
He said that after Bitcoin’s price falls by more than 30%, one should look at the 7-day moving average of exchange inflows.
“After inflows heat up, they begin to cool down, and this moment will be the best time to buy Bitcoin,” Ki Young Ju asserts.
Further easing of selling pressure points to an imminent price reversal.
Data: CryptoQuant.
The CryptoQuant CEO added that during sharp price declines, large Bitcoin holders move coins to exchanges for further selling, but usually do not sell them.
“Whales typically profit when retail investors are active in the market. The price of Bitcoin is likely to rise when whales are active in the market in the long term,” he wrote.
In late February, CryptoQuant recorded large Bitcoin outflows from Coinbase, the US exchange oriented toward institutional investors. Ki Young Ju said these were purchases of digital gold during price declines carried out on the over-the-counter market.
In mid-March, a dispute arose between Glassnode and CryptoQuant over the causes of the sharp market downturn. Ki Young Ju saw this as a consequence of whales moving a large batch of Bitcoin, including to the Gemini crypto exchange on March 15.
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