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Bitcoin's Bull Run Tests Limits Amidst Market Volatility

Coin WorldMonday, Jan 27, 2025 10:22 am ET

1min read

Bitcoin's recent price correction has sparked concerns about the sustainability of the ongoing bull market. On January 27th, the cryptocurrency dipped temporarily below $98,000, marking a substantial nearly 10% correction from its historic peak. This development has triggered skepticism among investors regarding the continuation of the bull market.

Following the victory of Trump in the U.S. presidential election, Bitcoin surged from approximately $66,000 to an impressive high of $109,000. Throughout this rally, investors have witnessed two notable pullbacks exceeding 15%, alongside multiple instances of price drops over 10%, which underscores that the current decline aligns with historical volatility.

In assessing bullish market conditions, the Short-Term Holder Cost Basis emerges as a vital indicator, reflecting the on-chain moving average over the last 155 days. Presently positioned at around $91,000, a decline beneath this threshold could signal potential challenges for the continuation of the existing bull trend. If Bitcoin falls below this level, the bull market may face a test.

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