Bitcoin’s 19.1% pullback from its peak is mild by this cycle’s standards.
Bitcoin’s current 19.1% decline from the all-time high above $126,000 is among the mildest in this cycle, according to Glassnode.
A trader under the moniker Lourenco VS noted that bitcoin’s drop aligns with historical patterns. According to him, in this cycle corrections have typically been 20%-25%, on rare occasions reaching 30%.
“To see this move as something terrible and anomalous is to ignore the facts. What is happening fits within normal volatility, and the long-term market structure remains intact,” the expert said.
Others on the market share the view. A trader using the pseudonym cotton was surprised by the reaction to the latest correction in digital gold.
“Why all this panic, as if something extraordinary had happened? We have seen such drops many times. And the market has always recovered,” he noted.
A Binance Live analyst known as On-Chain College emphasised that nothing has changed fundamentally or technically, so it is premature to call a bear phase. He was backed by a DeFi researcher under the pseudonym Cypher.
The latter highlighted several factors indicating a still-bullish market structure:
Over the past month, accumulator addresses — wallets that only buy and never sell — acquired a record 375,000 BTC. Around 50,000 BTC were bought on 4 November, when bitcoin fell below $100,000, said a CryptoQuant analyst under the moniker Darkfost.
“Overall market demand is slowing, but activity by this investor cohort continues to increase. Over the past two months, their average monthly purchases have more than doubled — from 130,000 BTC to 262,000 BTC,” the expert noted.
In his view, spot bitcoin-ETFs are supporting the increase despite continuing outflows. During the latest trading session, $577 million was withdrawn from the investment products.
Aggregate inflows remain positive. Since launch, exchange-traded funds based on the first cryptocurrency have attracted more than $60bn.
Earlier, Wintermute analysts called the redistribution of liquidity one of the main reasons for the crypto market’s stagnation.
A CryptoQuant expert under the pseudonym CryptoOnchain said that a bitcoin break below $101,000 would hit the bullish trend.
