According to an analysis published on CryptoQuant, Bitcoin’s roughly 19% decline from its peak has exceeded the average correction in past bull markets, while short-term investors have also increased selling at a loss.
Bitcoin’s decline came as expectations for U.S. interest rate hikes strengthened, Treasury yields rose, and AI stocks weakened.
How does Bitcoin’s decline compare with past corrections?
According to the indicator used in the analysis, the average peak-to-trough decline in previous bull cycles was about 14.4%. The latest drop exceeded that average. The analyst believes the current price range could be a bottoming area if the broader bull market structure remains intact.
Short-term investors are selling at a loss
The seven-day average of SOPR, which shows whether Bitcoin sold by short-term investors is sold at a profit or a loss, fell to 0.987. A reading below 1 indicates that coins changing hands are being sold below their average cost basis. According to the analysis, similar levels were also seen at notable bottoms in previous bull markets.
Not investment advice.