Ki Young Ju, CEO of CryptoQuant, reassures that the bull market of Bitcoin is still on track despite recent price corrections, pointing out that such pullbacks are typical during parabolic rallies.
Bitcoin began a bearish trend over the weekend, dipping below $96,000 by Sunday evening. Although BTC briefly rebounded to nearly $99,000 on Monday, its value continued to slide on Tuesday, reaching approximately $93,885.26.
This marks a 4.29% decline in the past 24 hours, though it still reflects a 2.34% increase over the past week.
Market experts highlighted this movement as part of a broader bull market phase. Historical patterns suggest that such corrections are not uncommon in parabolic price rallies.
Bitcoin Price Volatility and Historical Patterns
In a tweet, Ki Young Ju explained that Bitcoin’s price corrections during bull markets often align with its historical behavior. Previous rallies have also seen similar pullbacks as Bitcoin reached new price milestones.
For instance, during its 2021 rally from $17,000 to $64,000, Bitcoin experienced drawdowns of 10%, 28%, 25%, 16%, and 26%.
Ju emphasized that these retracements are a natural part of market dynamics, driven by traders taking profits or reacting to leverage conditions.
Further data also indicated heightened leverage within the market, contributing to Bitcoin’s inability to break past the $100,000 resistance.
CryptoQuant’s metrics revealed that open interest and leverage ratios reached annual highs, signaling over-leveraged conditions that likely triggered the latest correction. With Bitcoin pulling back to $92,500, CryptoQuant views a 10-20% correction as a natural occurrence within ongoing bull markets.
Data Show Accumulation Trends
From an on-chain perspective, Bitcoin remains on an upward trajectory despite short-term fluctuations. Key metrics, including MVRV, NUPL, and the Puell Multiple, suggest that the crypto continues to operate in a bull market.
CryptoQuant highlighted its Short-Term SOPR metric as particularly significant for identifying accumulation opportunities.
This metric, which tracks the profitability of short-term holders, indicates favorable conditions for accumulation during corrections. Historically, when short-term investors sell at a loss, rebounds have frequently followed. Recent SOPR readings show a profit-taking trend among some holders, suggesting a potential reset.
Moreover, a recent analysis by IntoTheBlock uncovered that over 450K wallets have accumulated 344K BTC worth over $32 billion in the $90K range. According to the report, this creates the foundation for Bitcoin’s potential rebound beyond $100K.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
