Over the past 48 hours,Bitcoin (BTC) price dropped 13% from its new all-time high of $73,835 to briefly trade near $60,000. The correction was caused by overheated market conditions in what analysts have christened a “pre-halving retrace” ahead of the Bitcoin halving event that is roughly 30 days away.
BTC/USD daily chart. Source: TradingView
However, a report by CryptoQuant shows that the Bitcoin bull cycle is not over, given the relatively low level of investment flows from new investors and price valuation metrics still below levels seen in past market tops.
The on-chain data analytic firm’s Weekly Crypto Report reveals that 48% of Bitcoin investment is coming from short-term holders. The “bull cycle typically ends with 84%-92% of investment” from these new investors, according to CryptoQuant analysts.
“The Bitcoin bull cycle is still far from over, as shown by the relatively low level of new investment flows.”