Crypto Bulls Unfazed: On-Chain Data Suggests Rebound Amid Market Crash

Crypto bulls are maintaining their stance despite the recent tumble in digital asset prices, citing on-chain factors and historical data that suggest a possible rebound. While sentiments have reached their lowest levels in months following massive liquidations, the crypto market cap has crashed to $2.85 trillion, marking a further 2.4% decline today.

The crypto market is grappling with heightened sell pressure as Bitcoin and top altcoins slip below resistance levels. Amid rising offloads, some traders have doubled down on the market, suggesting that it may be nearing its projected cycle top. Traders have pointed to the relationship between Bitcoin and hash prices, a metric used to gauge miner profitability, as a key indicator. Currently, the hash price is not at the bottom of the BTC price, which could signal a potential rebound.

CryptoQuant's CEO Ki Young Ju has noted that panic selling is not the right approach and has urged users to follow a clear path. He has insisted that a 30% drop in the market will not plunge it into a bear cycle, citing historical data to support his argument. Ju believes that the current bull cycle could continue even with a -30% dip from the all-time high, as seen in past cycles.

Digital asset enthusiast Cryptogit has explained that a bull run typically lasts for about 1,067 days, as seen in 2017 and 2021. Previous Bitcoin prices hit a cycle top of about 525-550 days post-halvings, which would suggest that the bull run could continue until Q4 2025. Institutional activity on the heels of a favorable administration is still in play for most whales, further bolstering the bullish sentiment.

The crypto dip, which started as a sustained slip below the $3.2 trillion mark, has taken a new turn, with billions wiped out of the market. Assets face strong sell pressures from both institutional and retail traders, with thousands of traders being liquidated in the last 24 hours. Despite the recent downturn, a slew of experts has projected a possible recovery.

Bitcoin is currently trading at $85,913, marking a sharp 11% decline in the past 24 hours. This decline has sent shockwaves across the altcoin market, with Ethereum plummeting