Bitcoin (BTC) May Undergo a Period of Correction or Sideways Movement

Bitcoin may undergo a period of correction or sideways movement in the coming year.

The crypto market continues to be in flux, and one figure closely watching the on-chain signals is Ki Young Ju, CEO of CryptoQuant.

Previously, Young Ju stated that “it’s too early to call it a bear market,” and this perspective was evident in the CryptoQuant chart, which showcases Bitcoin’s price movements over different periods.

The chart highlights two key color zones representing capital flow trends in the market. When “Apparent Demand” is high, it indicates a strong influx of liquidity and capital, which is usually accompanied by an increase in Bitcoin’s price. Conversely, when “Apparent Demand” decreases, it signifies less liquidity and capital flowing into the market, which tends to put downward pressure on Bitcoin’s price.

Recently, Young Ju announced that the Bitcoin bull cycle had ended, and he predicts that the price will decline or move sideways for the next 6 to 12 months.

This statement comes after he previously stated that the market had not yet entered a bearish phase. So, what caused him to change his view?

On-chain data suggests that the “Apparent Demand” index continues to decrease, reflecting existing market demand. However, institutional and Bitcoin ETF inflows are still present, and BTC’s price is still holding at critical support levels. This indicates that although there is less liquidity, existing liquidity is still supporting Bitcoin’s price to some extent.

Young Ju cited 4 main reasons for his change in outlook.

The PnL Index is a technical indicator that measures the profitability or loss of traders who bought Bitcoin at different prices over a specific period. It is often used to gauge market sentiment and identify potential trends.

According to the chart, Bitcoin follows a clear cycle of growth and correction, indicated by the following signals:

The chart shows that when the PnL Index is above zero, more traders are in profit, which tends to favor a bullish market. As the PnL Index decreases and approaches zero or negative values, it indicates that traders are realizing their gains, selling pressure increases, and the market may be entering a correction phase.

After a period of rapid growth, Bitcoin’s price faces selling pressure and stalls, leading to a decrease in the PnL Index and eventually becoming negative. This signals that traders who bought Bitcoin earlier are selling at higher prices, putting pressure on the market to decline.

This analysis aligns with the common understanding of the PnL Index and its implications for market sentiment and potential trends in the cryptocurrency market.

Bitcoin’s price movements are closely watched by traders and analysts, who use various technical indicators and on-chain data to anticipate future price action.

According to Young Ju’s analysis, Bitcoin’s price chart shows that it has dropped below several key technical support levels, suggesting a continuation of the downward trend.

The chart highlights several crucial price points that traders typically pay attention to. As Bitcoin’s price falls below these levels, it could be encountering selling pressure from traders who entered at higher price ranges.

The technical support levels provide insights into the psychological and technical factors influencing Bitcoin’s price movements. As it drops below these levels, it could be encountering stronger selling pressure, leading to a continuation of the downward trend.

suggesting that traders are cutting losses and selling at lower prices.

On-chain metrics are closely watched by traders and analysts to gain insights into the behavior of market participants and anticipate potential trends in the cryptocurrency market.

suggesting that traders are cutting losses and selling at lower prices. This analysis aligns with the common understanding of MVRV, SOPR, and NUPL as indicators of market sentiment and potential market cycles.

These indicators have appeared in past bear markets, suggesting that Bitcoin may be entering a phase of increased risk or potential market adjustment.

suggesting that institutional capital is pulling out of the market. This analysis aligns with the common understanding of liquidity as a crucial factor in supporting or pressuring asset prices.

suggesting that Whales are selling BTC at lower prices and exiting their positions gradually. This analysis aligns with the common knowledge that large traders, also known as Whales, can have a significant impact on market trends due to their large capital and trading activity.

Overall, these on-chain metrics suggest that Bitcoin is facing strong downward pressure and could be entering a bear market. However, the cryptocurrency market is inherently volatile and difficult to predict.

Investors should remain cautious, closely monitor key market indicators, and stay informed to make sound investment decisions.

DeFi was expected to be a key driver of the crypto bull cycle, providing decentralized financial services such as lending, borrowing, staking, and yield farming. However, as of early 2025, DeFi has been underwhelming and did not meet initial expectations. Here’s a detailed analysis based on recent data and research, as of March 19, 2025.

DeFi is a decentralized financial ecosystem built on blockchain technology, enabling users to perform financial transactions without intermediaries like banks or traditional financial institutions. During