CryptoQuant analyst released a new report pointing out that after reaching a new all-time high this month, Bitcoin has entered a price correction period. The main reason for this is that traders are selling their holdings to realize high profit margins. However, the current Bitcoin bull market cycle is far from over.
After breaking through the historical high of $67,500, Bitcoin entered a price correction phase, with the price dropping more than 17% from its peak to $60,775. In response to this, CryptoQuant analyst pointed out that miners, whales, and other market participants, including large investors, have started selling Bitcoin to “take profit.” However, it is determined that the Bitcoin bull market cycle is far from over.
Regarding the recent decline in Bitcoin, CryptoQuant believes that traders are selling their holdings to achieve high profit margins. The unrealized profit rate has surged to 69%, reaching a new high since March 2021. Despite the subsequent sell-off of Bitcoin by traders, the current unrealized profit rate remains as high as 47%.
As the price of Bitcoin soared above $70,000, large Bitcoin holders also started selling. On the 12th, when Bitcoin reached its historical high, they transferred a total of 567,000 BTC, accounting for 35% of the total Bitcoin transfer volume on the network.
Some of the large holders are Bitcoin miners. With the rise of Bitcoin, mining revenue has reached a new high. With Bitcoin surpassing $70,000, there has also been significant growth in Bitcoin transfers by miners in the OTC market.
The bull market is not over yet. CryptoQuant also added that the demand for Bitcoin in the US market has slowed down, and Coinbase premium has turned negative after Bitcoin reached a new all-time high. If Bitcoin continues to pull back, it may fall to $58,000 to $60,000, which is the cost basis for large short-term holders.
However, in the long term, CryptoQuant believes that Bitcoin has not reached the top of this bull market cycle. Currently, about 48% of Bitcoin buying funds come from short-term investors. Historically, the bull market cycle ends when short-term investors account for 84%-92% of Bitcoin investment.
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