Bitcoin experienced a significant surge in value following the US elections, reaching a peak just under $100,000, and then retraced, dropping to just over $90,000. Several factors contributed to this correction, including Short-Term Holders (STH) taking profits due to the increase of their investments by 40-50% against the dollar.
The Fear and Greed Index was also deep in ‘greed’ territory for weeks, signaling a potential local top. Analysts on X noted that such a price decline is common after a massive rally, and it could be expected. However, on-chain data from CryptoQuant’s MAC_D analyst suggests that the bull market is still active, and the Bitcoin peak may not have been reached yet.
Despite the recent price slump, cycle metrics such as MVRV, NUPL, and Puell Multiple indicate that Bitcoin is still in a bull market with potential for upward movement. The short-term SOPR metric is particularly useful in identifying major accumulation periods during corrections. Moreover, whales have been accumulating Bitcoin, with five fresh wallets withdrawing $86.4 million in BTC from Binance even before the crash.
These factors suggest that the bull market is not over and that whales continue to be bullish on Bitcoin.
Source
<p>The post Bitcoin Price Correction Explained: Is the Bull Market Over? first appeared on CoinBuzzFeed.</p>
