Bitcoin Market's Current Overheating Less Intense Than Previous Correction Periods

The cryptocurrency market is experiencing a period of cooling off after a short-term overheating phase that is less severe and shorter in duration than previous cycles, according to CryptoQuant. This implies a potential for a small short-term dip for Bitcoin. The current cooling off period is deemed less intense, based on the proportion of Bitcoin held for a week or less. CryptoQuant predicts that a correction, if any, would be milder and shorter, suggesting a healthy market cycle. There could be an uptrend in the latter half of 2025, particularly if market conditions are favorable.

While the market appears to be consolidating, Bitcoin is testing a key resistance level, and the overall structure remains bullish. A breakout above $120.5K could mean a continuation of the upward trend. Finally, Bitcoin's current price of $118K is prompting long-term holders to sell off some of their holdings.