Bitcoin recently dipped to around $74,000, causing some concern. But is this the start of a bear market, or just a temporary setback? One analyst thinks it’s the latter.
A Bullish Outlook
ShayanBTC, an analyst on the CryptoQuant platform, believes the recent price drop is a healthy correction within a larger bull market. Their analysis focuses on how long-term Bitcoin holders are behaving.
Long-Term Holders Are Holding
ShayanBTC looked at the age of Bitcoin held by investors. They found that investors who’ve held Bitcoin for 3-6 months and 6-12 months are accumulating more, rather than selling. This is similar to accumulation patterns seen during a correction in summer 2024. This “holding trend” suggests confidence in Bitcoin’s long-term value.
Scarcity and Price Discovery
This accumulation means less Bitcoin is available for trading, increasing its scarcity. Historically, this scarcity has led to significant price increases. ShayanBTC believes this, combined with new demand, could push Bitcoin to new all-time highs.
No Bear Market in Sight?
Based on this on-chain data, ShayanBTC argues that a bear market is unlikely. The recent dip is more likely a natural correction within a continuing bull cycle.
Bitcoin’s Current Price
Bitcoin is currently trading above $85,000, showing a recovery from the recent dip. The price has seen a positive trend over the past 24 hours and the past week.
