Bitcoin remains above $107,000 with on-chain signals of a healthy market
13:15 ▪ 4 min read
Get informed ▪ Bitcoin (BTC)
The recent 12% drop in Bitcoin has drawn attention, but on-chain data indicates that this correction is a normal phase in the market. Analysts say that the decline is within historical patterns and reflects a healthy reset rather than the end of the ongoing bull cycle.
In summary
The 12% drop in Bitcoin reflects past bull cycles, indicating a healthy market reset.
Strong support at $107K and oversold signals suggest potential for a new push.
Resistance near $110K remains key, a breakout above $111K is needed to change the trend.
Correction within a bull market
CryptoQuant's on-chain analysis of Bitcoin shows that the drop from its all-time high of $123,000 to around $108,000 is in line with previous corrections. The study points out that such movements help the market adjust after periods of strong growth. Historical data shows that 20-25% corrections are often recorded even during strong rallies.
CryptoQuant analyst Darkfost noted that Bitcoin has seen price drops of nearly 28% since breaking previous highs in March 2024. He explained that these corrections are common events in bull markets and serve to reduce excessive leverage in derivatives trading. Analysts believe that this process provides opportunities for investors with a long-term perspective.
