Since the FTX debacle, Bitcoin has not corrected as significantly as in the past few days. Within 24 hours, the crypto reserve currency fell 8.44 percent. At the time of writing, Bitcoin is 16 percent away from its all-time high of $73,750. The market capitalization is $1.2 trillion. This means that BTC has slipped back into place as the 10th largest asset in the world. Some people already sense attractive entry prices in the current dip.
But: Will Bitcoin continue to correct now or has the current dip already bottomed out?
Data from CryptoQuant shows what indicates a continued cooling of the market. In the Bitcoin Bull-Bear Market Cycle Indicator, the analysis company presents different phases of bull and bear markets. Values above 0 indicate a bull cycle, values below 0 indicate a bearish tendency.
The indicator has been on a bull cycle since January 22, 2023, and the value has been significantly higher since the beginning of March 2024, indicating a so-called “overheated bull cycle”. After all: at the time of writing, the indicator has fallen from “overheated” to “bull cycle”. So the correction comes at the right time to cool the market down a bit.
In fact, it is not uncommon for the indicator to fall to as low as 0.5 even in a bull market. At a current value of 0.64 there would still be room for improvement and Bitcoin could correct further.
The Bitcoin Bull-Bear Market Cycle Indicator is just one of many indicators that can help navigate the complicated waters of the crypto market. You can find more in our new BTC-ECHO Bitcoin Report.
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