CoinMartketCap reports that the price of BTC has dropped more than 3% in the past 24 hours. The selling pressure on BTC is decreasing, which could trigger a trend reversal.
After a brief rally, Bitcoin (BTC) is experiencing a significant price correction once again. The recent price drop may raise concerns among BTC investors.
However, from a broader perspective, BTC is far from reaching the peak of this cycle.
Bitcoin is nearing its peak
Data from CoinMartketCap shows that BTC has fallen by 13% in the past seven days. In the past 24 hours, the coin’s value has dropped by nearly 3%.
At the time of writing, BTC’s trading price is $55,412.77, with a market cap exceeding $1.09 trillion.
Analysis by AMBCrypto using IntoTheBlock data reveals that only 75% of BTC investors are profitable after the latest price adjustment, accounting for over 40.47 million addresses.
However, the overall trend may change in the coming months.
Popular cryptocurrency analyst Willy Woo recently tweeted, emphasizing the relationship between Bitcoin’s decline and its cycle peak.
According to the analysis, BTC’s price always reaches its peak after a decline of nearly two years. For example, after the halving in 2012, BTC reached its peak in 2014.
After BTC’s third halving in 2020, its price is expected to reach the cycle peak in 2022. Therefore, if history repeats, investors may see BTC reach a new cycle high in 2026, just like the fourth halving that occurred in 2024.
This latest analysis indicates that investors should have confidence in HODLing the king of cryptocurrencies, as the profits they may gain in the next few years could be significant.
Analysis by AMBCrypto using IntoTheBlock data shows that investors have shown great confidence in the coin.
This seems to be the case as over 70% of Bitcoin holders are long-term holders, meaning they have held Bitcoin for over a year.
Short-term expectations
As the long-term outlook appears quite optimistic, AMBCrypto plans to examine BTC’s on-chain data to see what may happen in the short term, as it recently witnessed a correction.
Our examination of CryptoQuant data reveals that BTC’s exchange reserves are declining, indicating a decrease in selling pressure on the token.
Its Binary CDD is green, meaning that long-term holders have been less active in the past seven days. Their holding of the coin is motivated.
Read Bitcoin’s [BTC] Price Predictions for 2024-2025
These indicators suggest that the price chart of Bitcoin may soon turn green.
However, its derivative indicators are bearish. For example, BTC’s buyer buy/sell ratio is red, indicating a dominant selling sentiment in the market.