Bitcoin's 10% Correction Sparks Debate on Bull Market Sustainability

Bitcoin's latest dip, a nearly 10% correction from its historic peak, has sparked debate among investors about the sustainability of the ongoing bull market. Following the U.S. presidential election, Bitcoin surged from approximately $66,000 to an impressive high of $109,000, experiencing two notable pullbacks exceeding 15% and multiple instances of price drops over 10%. The current decline aligns with historical volatility, and the Short-Term Holder Cost Basis, currently positioned at around $91,000, serves as a crucial indicator for assessing bullish market conditions. A decline beneath this threshold could signal potential challenges for the continuation of the existing bull trend.

Despite the recent correction, Bitcoin's performance during this bull market has been robust. Starting at the end of 2022, Bitcoin has surged 6.6x, going from $15,474 to $99,000 as of this morning. For most of the cycle, BTC has tracked ahead or just below the performance of the prior bull cycle between 2018 and 2022. Although BTC diverged below around 50 days ago, its current trajectory still fits the pattern of diminishing returns every cycle.

However, the recent dip has raised concerns about the potential for a more significant pullback. Some analysts have suggested that the current correction could be a minor pullback before Bitcoin's next move, while others have expressed skepticism about the sustainability of the ongoing bull market. As the market awaits further developments, investors will be closely monitoring Bitcoin's price action to gauge the direction of the market.