Bitcoin Below $100,000: Is the Bull Market Over or Just Resting?

The Bitcoin market has been correcting for weeks after rising over $108,000. Investors are worried about whether the market is cooling down or whether this correction represents the end of the bull run.

Indeed, Bitcoin's market cycles have frequently seen similar troughs, followed by fresh upward impetus. Now, analysts are using crucial on-chain measures to understand the present phase and Bitcoin's price direction.

Seller profit margins are declining as the SOPR (7-day Simple Moving Average) maintains above 1 but trends lower, according to the research. Drops below 1 frequently imply market mood swings, with bounces following as selling pressure fades.

It also examined Bitcoin's Miner Position Index. This index tracks miner behavior, notably their inclination to sell Bitcoin before market events like halving cycles or peak prices.

The MPI trend indicates no major outflows from miners to exchanges, indicating big mining companies are keeping their Bitcoin stockpiles.

Avocado said this shows faith in Bitcoin's long-term worth despite short-term volatility. Expect occasional sell-offs to fund operating expenses.

A 7-day Simple Moving Average of total network fees is another CryptoQuant analyst's key indicator. Transaction activity and on-chain engagement are measured here.

Avocado said that lower network costs indicate fewer trading activity and a market cooling down period. Lower transaction activity has historically preceded positive momentum, particularly when other indications agree.

Another key indication, funding rates, have fallen. Funding rates, the cost of long or short Bitcoin futures contracts, are used to evaluate market sentiment.

Funding rates frequently recover once gloomy sentiment peaks and buyers return during bull cycles.

#BitcoinInSwissReserves #MicroStrategyStockSale #BTC $BTC