No, Bitcoin Price Correction Does Not Imply Cycle Top

Bitcoin (BTC) has shed 2.12% in the last seven days, with prices falling below $110,000 and staying stuck. This correction in the asset’s price has led some to speculate that the development indicates the coin has peaked and might not soar higher.

Bitcoin on-chain indicators signal market still bullish

However, CryptoQuant maintains that bulls are still in charge and the market has not hit a “cycle top” to signal the onset of a bear market. According to the analytics platform, several on-chain metrics suggest that the bull run still has room to continue, and the recent drop is not unusual.

Notably, it pointed out that fewer Bitcoins are on exchanges, which suggests that investors are not looking to sell. Hence, there is no immediate selling pressure on the asset, which indicates that the market remains open to growth.

Meanwhile, long-term holders of the coin are still accumulating and are not willing to sell. Per technical indicators, Bitcoin’s Market Value to Realized Value (MVRV) is still less than 3.6. For the asset to hit peak market level, the MVRV has to hit 3.6.

Another indicator is miners’ action in the cryptocurrency market. Miners are hardly selling, which signals that these stakeholders are expecting higher prices ahead.

CryptoQuant insists that unless demand collapses, the asset shows potential for huge growth. If buyers stay in the game, the coin could rebound.

Analysts see correction as healthy for market

As of this writing, the Bitcoin price was changing hands at $108,813.57, representing a 0.39% increase in the last 24 hours. The coin briefly hit a peak of $109,890.58, sparking hopes of a rebound before facing corrections again.

As highlighted by the on-chain analytics platform, trading volume is up by 36.7% to $60.4 billion.

Interestingly, Michaël van de Poppe has predicted that this correction phase could see prices drop to $103,000 before a sustainable rebound.