The cryptocurrency market is cooling off after a brief period of short-term overheating. Unlike prior cycles, CryptoQuant believes that the current overheating is smaller in scale and duration.<\/p>\n
This means that Bitcoin could face a limited short-term dip in the near future.<\/p>\n
The data focuses on the proportion of Bitcoin held for just 1 day to 1 week \u2013 an important metric that hints at market froth. While previous corrections in March-October 2024 and January-April 2025 followed more intense and prolonged overheating phases, the current one appears less severe and shorter in duration.<\/p>\n
Given that the recent price uptick was relatively modest, CryptoQuant expects<\/a> any near-term correction to be milder and shorter-lived. The analysis stated that this is part of a healthy cycle. A potential uptrend could emerge in the second half of 2025, especially if macroeconomic conditions and market sentiment turn favorable. Overall, the findings point to temporary consolidation rather than a full-blown downturn.<\/p>\n Bitcoin is currently changing hands at $118K. But the recovery to this level has prompted long-term holders to offload<\/a> some of their stash. This is similar to past distribution cycles. Simultaneously, short-term holders are also facing shrinking gains.<\/p>\n To top that, Matrixport also warned<\/a> of a possible pause in Bitcoin\u2019s rally as traders face key macro events, including Fed decisions and a White House report. Historical weakness in August and September may trigger profit-taking and sideways action, even as long-term momentum remains positive.<\/p>\n Amid signs of a temporary market cooldown, Bitcoin Vector revealed<\/a> that Bitcoin is currently testing a key resistance level. Despite this, the overall structure remains bullish but lacks strong momentum. As such, a confirmed breakout above $120.5K would validate the continuation of the upward trend, while $112.5K serves as critical support on the downside.<\/p>\n As long as Bitcoin holds this range, pullbacks may present buying opportunities.<\/p>\n The post Overheating in Bitcoin (BTC) Market Less Severe Than Past Correction Phases<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The cryptocurrency market is cooling off after a brief period of short-term overheating. Unlike prior cycles, CryptoQuant believes that the current overheating is smaller in scale and duration. This means that Bitcoin could face a limited short-term dip in the near future. Crypto Market Cools Off The data focuses on the proportion of Bitcoin held […]<\/p>\n","protected":false},"author":0,"featured_media":85091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-85090","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\/85090"}],"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=85090"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/85090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/85091"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=85090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=85090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=85090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Bullish Setup Intact<\/h2>\n