Bitcoin went through one of its most spectacular runs in recent history since the US elections three weeks ago, skyrocketing from under $70,000 to just shy of $100,000.<\/p>\n
After gaining more than $30,000 in less than a month, it was almost inevitable that the asset would eventually retrace, which happened yesterday as BTC was rejected at $99,000 and pushed south hard by over six grand in hours.<\/p>\n
There were some warning signs about a pullback, though. CryptoQuant\u2019s analysts<\/a> outlined a few factors that contributed to this correction, including Short-Term Holders (STH) taking profits since their bags increased by 40-50% within weeks against the dollar. Although this meant that there could still be a chance to run at $100,000, the most probable scenario envisioned a price drop.<\/p>\n The fear of missing out (FOMO) levels were on the rise as well, which typically signals a potential local top. Additionally, the Fear and Greed Index, the metric showcasing the current market sentiment, was deep in \u2018greed\u2019 territory<\/a> for weeks. After all, we all know Warren Buffett\u2019s advice to sell when others are greedy.<\/p>\n As reported earlier, many analysts on X outlined that such a price decline after a massive rally is to be expected. In fact, they even warned<\/a> that BTC had pulled back a lot harder in previous bull cycles, meaning that the asset\u2019s bottom might not have reached yet.<\/p>\n CrytpoQuant\u2019s MAC_D analyst also weighed in<\/a> on the matter, indicating that this price slump was \u201cdue to leverage overheating, as open interest and estimated leverage ratio reached annual highs.\u201d They added that a similar or even larger correction of up to 20% \u201ccan be seen as a natural phenomenon.\u201d<\/p>\n While another price drop seems likely for the short term, MAC_D highlighted a few on-chain metrics that suggest the bull market is still active and BTC hasn\u2019t reached this cycle\u2019s peak yet.<\/p>\n \u201cCycle metrics such as MVRV, NUPL, and Puell Multiple still indicate that Bitcoin is in a bull market with upward potential. The key here is to identify major accumulation periods during corrections, with the \u2018Short-Term SOPR\u2019 metric being particularly useful.\u201d<\/p>\n The short-term SOPR metric jumped to almost 1.1 on November 21, meaning that STHs had begun realizing profits, which could actually be good news for BTC.<\/p>\n \u201cHistorical patterns show that when short-term investors sell Bitcoin at a loss, it often leads to a rebound.\u201d<\/p>\n And while short-term holders seem to be offloading their assets, some even at a loss given the billions of dollars accumulated<\/a> at prices of around and over $97,000, whales stand on the opposite corner.<\/p>\n Lookonchain data shows that five fresh wallets had withdrawn $86.4 million in BTC from Binance even before the crash.<\/p>\n Whales continue to accumulate $BTC<\/a>!<\/p>\n In the past 5 hours, 5 fresh wallets withdrew 886 $BTC<\/a>($86.4M) from #Binance<\/a>.<\/p>\n Address: \u2014 Lookonchain (@lookonchain) November 25, 2024<\/a><\/p>\n\n And, let\u2019s not forget MicroStrategy. The Saylor-founded company announced<\/a> another mind-blowing purchase worth nearly $5.5 billion yesterday, pushing its total holdings to almost 387,000 BTC.<\/p>\n The post Bitcoin Dumped by $6K Daily But These On-Chain Metrics Suggest Bull Market Is Still On<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin went through one of its most spectacular runs in recent history since the US elections three weeks ago, skyrocketing from under $70,000 to just shy of $100,000. After gaining more than $30,000 in less than a month, it was almost inevitable that the asset would eventually retrace, which happened yesterday as BTC was rejected […]<\/p>\n","protected":false},"author":0,"featured_media":23528,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-23527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/23527"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23527"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/23527\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/23528"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}On-Chain Data Says Bull Market Still On<\/h2>\n
Whales Keep Buying<\/h2>\n
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\nbc1qvjvcpehcrdneqeqhmqzdrday88cx0h2munprec\u2026 pic.twitter.com\/TI1bZxXNhA<\/a><\/p>\n