Bitcoin Rises Amid Bull Market, Faces 30% Correction
**The Essentials at a Glance:**
– Bitcoin (BTC) has experienced an impressive rally in recent weeks, but current market movements suggest a potential correction.
– An analyst warns of a possible decline of up to 30%, which has not been uncommon in previous bullish market phases.
– Network activities such as transaction volume and active addresses continue to rise, indicating long-term bullish signals.
– BTC reserves on exchanges are decreasing, pointing to stronger self-custody and potentially positive price developments.
Is a 30% Bitcoin Correction Possible?
Bitcoin has shown impressive performance in recent weeks, with a 39.51% increase over the past month. The market capitalization reached $1.85 trillion USD. However, a 5.15% price correction in the last 24 hours could indicate a pause in the upward trend.
According to crypto analyst King Young Ji, such declines are not uncommon during bullish phases. He refers to historical data showing that Bitcoin underwent several corrections during the 2021 bull run. These corrections ranged between 10% and 28%, despite an overall increase from $17,000 to $64,000 USD.
A similar development could occur this time as well. Such pullbacks are often part of a healthy market cycle and lay the groundwork for further price gains. However, caution is advised, as short-term market movements remain unpredictable.
Network Activity as an Indicator for Future Movements
Activity within the Bitcoin network continues to show positive signals. The number of active addresses, meaning wallets that conducted transactions in the last 24 hours, has risen to 1,276,535 – a level last seen in May.
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Additionally, transaction volume increased by 56.27%, indicating heightened market participation. The token transfer volume has also recovered after a decline the previous day, with over $1 million USD worth of BTC moved. These developments suggest that Bitcoin could regain momentum after a potential consolidation phase.
Declining BTC Reserves on Exchanges
Another significant factor is the decline in Bitcoin reserves on crypto exchanges. Over the past seven days, these reserves decreased by 2.75%, with only 2,507,706 BTC now available on exchanges.
This trend suggests that investors are increasingly transferring their coins to self-custodial wallets. This is often viewed as a sign of long-term bullish expectations, as fewer BTC are available for trading or selling. A continued shortage could further support the price.
Our Assessment
The current market situation for Bitcoin presents both opportunities and risks. A correction of up to 30% is certainly possible but should not be misinterpreted as a sign of a long-term downtrend. Historical data shows that such pullbacks are often part of a healthy market cycle.
The rising network activity and declining exchange reserves reinforce the bullish sentiment. However, it is important to monitor short-term volatility and make well-informed decisions.
Sources:
– CryptoQuant
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $92,529.00 |
| 24h % | -2.06 % |
| 7d % | 0.71 % |
| 30d % | 36.40 % |
| 60d % | 39.82 % |
| 1y % | 147.94 % |
| Market Cap | $1,830,924,537,271.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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