Is Bitcoin Bull Cycle Over? Stablecoin Inflow Hints At BTC Rally Ahead

Bitcoin price action has recently sent shockwaves across the broader market with its volatility, flagging a potential bull cycle end. Notably, CryptoQuant CEO on Tuesday said that the “BTC bull cycle is over,” triggering market concerns globally. Nevertheless, the latest market statistics, such as rising stablecoin inflows, broader advancements, and bullish price chart formations, conversely signal that a rally lies ahead.

CryptoQuant CEO Says Bitcoin Bull Cycle Is Over, Is It True?

BTC price lost nearly 1% value and exchanged hands at $83,179 as of press time. The coin mainly stagnated around the $80K-$85K price level over the past week.

In an X post on March 18, CryptoQuant CEO Ki Young Ju conveyed that he believes the flagship coin’s bull cycle is over. Besides, Young anticipates 6-12 months of a bearish or sideways trading session for the crypto ahead.

The CEO says, “Every on-chain metric signals a bear market.” Notably, this comment stems from the CEO’s observations of fresh liquidity drying up and new whales selling at lower prices.

Additionally, the bull cycle end warning is in sync with PCA (Principal Component Analysis), a metric to analyze on-chain aspects. Young reveals that after analyzing aspects like MVRV, SOPR, and NUPL to compute a 365-day moving average, the signal identifies an inflection point, a.k.a trend reversal ahead.

Although these market dynamics triggered market concerns of a Bitcoin correction/consolidation ahead, other developments conversely stirred up the crypto market.

Stablecoin Inflow Surge Sparks Optimism

According to an X post by Matrixport on March 18, stablecoin inflows continue to surge despite the recent market turmoil. Both Tether (USDT) and Circle (USDC) witness constant inflows, conversely bringing more liquidity to the market.

Reportedly, the stablecoin growth recorded in Q4 last year has moderated, although the uptrend still persists. Fresh capital continues to flow into the crypto market despite a turbulent action amid macro heat, signaling renewed investor sentiment.

This saga, in turn, sparked bullish sentiments as Bitcoin demand could also rise ahead.

Metaplanet Continues Buying Spree

Simultaneously, Japan’s Metaplanet’s acquisition plans continue to underscore a burgeoning institutional interest in the flagship asset. The Japanese public company acquired 150 BTC worth $12.5 million on March 18 as a part of its treasury operations.

The constant buying is a solid confidence booster for market participants, indicating an institutional shift towards the crypto asset class. CoinGape reported that the Singapore Exchange (SGX) is also eyeing the launch of Bitcoin futures contracts amid rising adoption in the Asian landscape.

Meanwhile, even Michael Saylor’s Strategy bought 130 coins for $10.7 million recently. Altogether, these broader developments signaled that a price rally is possible when looking at long-term prospects.

Price Rally Awaits?

Crypto analyst ‘Stockmoney Lizards’ posted on X this Tuesday, stating that BTC is in a corrective channel, characterized by lower highs and lower lows. However, this bearish momentum is waning, per the analyst. The current price chart formation shows a bullish divergence in the daily time frame.

For context, bullish divergence signals a reversal in a downtrend, suggesting that price gains loom. However, the analyst also revealed that a potential dip to mid-low 70s is anticipated. Nevertheless, <80k remains as a string accumulation zone for many.

In conclusion, the Bitcoin bull cycle may not be over long-term, although short-term volatility may be expected amid broader trends.