The price correction that took place after Bitcoin surpassed $108,000 raised various questions about how long this process will last.

While many investors are not seeing this correction as the end of the bull cycle, concerns are growing that a similar correction could occur that began in March and lasted about six months.

According to data shared by an observer from CryptoQuant, the current state of the market is considered a "cooling period."

SOPR and Profit Rates
The Adjusted SOPR (ASOPR) indicator, which measures the output profit ratio spent on Bitcoin, presents a market situation free of short-term fluctuations. ASOPR, analyzed by the seven-day simple moving average (SMA), is currently above 1, but in a downward trend. This indicates that the profit margins of market participants are decreasing.

Historical data shows that Bitcoin usually recovers when ASOPR drops below 1, as selling at a loss can cause price reversals in bull markets.

Miner Position Index (MPI)
The Miner Position Index (MPI), which is used to track miners’ Bitcoin selling behavior, is currently trending downward, indicating that large mining companies continue to maintain their assets. Miners are known to sell during halvings or near cycle peaks. However, it is currently observed that miners are not making large-scale transfers to exchanges. This suggests that miners continue to sell periodically to cover their operational costs.

Total Network Fees and On-Chain Activity
Total network fees stand out as an important indicator reflecting on-chain activity. This data, analyzed with the seven-day SMA, is currently decreasing, indicating a decrease in on-chain activity. This is considered another indicator that the market is leaving the overheating period behind and entering a cooling phase.

Funding Rates and Market Sentiment
There is also a downward movement in funding rates. Bitcoin generally shows a recovery trend during periods when funding rates experience extreme declines. Bitcoin prices have seen increases again, especially during periods of negative funding. If funding rates continue to decline and market sentiment moves negatively, the possibility of a new recovery may increase.

On-chain data suggests that Bitcoin is still in a bull market, with the current price correction being seen as a market “cooling off” rather than a cyclical peak. However, short-term price movements remain difficult to predict.