Bitcoin has performed impressively recently, surging 39.51% within a month, successfully breaking through the $1.85 trillion market cap.
But surprisingly, its price has dropped 5.15% in the past 24 hours, which may indicate that the upward trend will pause temporarily.
However, industry insiders believe that this drop may be a healthy correction in the market, and the bullish fundamentals remain unchanged.
After a period of consolidation, Bitcoin is expected to regain its upward momentum. However, cryptocurrency analyst King Young Ji has warned that Bitcoin may face a significant correction before it can restart its upward path.
Bitcoin's performance during the 2021 bull market, when the price skyrocketed from $17,000 to $64,000. Despite the strong upward trend, BTC experienced five significant corrections.
The minimum drop is 10%, and the maximum drop reaches 28%, highlighting that even in a bullish market phase, volatility can occur.
BTC's current uptrend may experience a similar pullback. Although this pullback can be unsettling, it is part of a healthy market cycle and often foreshadows further increases.
Bitcoin's network activity is strengthening, with a sharp increase in trading volume and active addresses—both of which are key indicators of a potential rebound.
The number of active addresses has surged to 1,276,535, reaching its highest level since May. Meanwhile, trading volume has also skyrocketed by 56.27%, enhancing the possibility of strengthened bullish momentum.
Active addresses are calculated based on the unique wallets that participated in BTC transactions (sending or receiving) within a given time frame (in this case, the past 24 hours).
Meanwhile, the volume of token transfers rebounded strongly after a significant decline the previous day. Over $1 million worth of BTC has been transferred, reflecting a resurgence in investor activity.
If this uptrend continues, Bitcoin may regain momentum and rise in the coming days.
