The current correction of the BTC rate is radically different from others in its more stable structure
An analysis of the latest Bitcoin (BTC) price correction reveals key differences from the phase preceding the bear market at the end of 2021. Back then, the MVRV reached 2.0, indicating overheating. Currently, however, the trend is occurring at a more moderate MVRV of 1.65, reflecting significantly less overvaluation. According to analysts, this also points to a more stable market structure and reduced speculative activity compared to 2021.
Price dynamics are also noticeably different. In 2021, the price already broke through a long-term ascending trendline, which was an early signal of a protracted decline. In the current situation, price movement appears different: the market is only testing and reconfirming the ascending trendline that has been forming since late 2023. This indicates the continuation of the underlying bullish trend. The correction has not disrupted the underlying structure and remains within the normal growth cycle.
The indicator thresholds for a bear market have also not been reached. To trigger these signals, the MVRV must fall below 1.0 and NUPL must enter negative territory. The current price is significantly above these levels, and to reach the average cost of all investors, Bitcoin must decline by approximately another 40%. These conditions have not yet been met, and fundamental indicators do not confirm the beginning of a full reversal of the cycle.
Additional support is coming from increasing demand from new major holders. Interest remains in the accelerating phase, reducing the likelihood of a sustained bear market in the near future. The influx of capital provides a solid foundation for continued long-term momentum.
According to researchers, the current phase appears to be an emotional market cleansing, accompanied by short-term fear and capitulation among weaker participants. These processes have successfully neutralized overheating, corrected sentiment, and created a more favorable starting point for further growth.
Source: cryptonews.net
