Bitcoin's price has fallen 10% from its peak: a healthy market correction.

After reaching an all-time high of $122,000–$124,000, the Bitcoin (BTC) price has declined by 10–11%. According to Binance, which hosts the largest liquidity for the cryptocurrency, this decline was deeper than previous short-term pullbacks after new highs. However, Arab Chain analysts emphasize that the current decline appears to be a natural correction rather than the beginning of a major collapse.

By comparison, in previous bear market cycles, declines reached 70%–80%, significantly exceeding the current level. Therefore, a decline to $109,000–$110,000 becomes a local critical level, after which the market may consider a more serious reversal. For now, the movement is categorized as a correction within an ongoing upward cycle.

Since the beginning of 2024, Bitcoin's price has repeatedly hit new all-time highs, demonstrating steady growth. This confirms that the market remains in an expansionary phase, despite local declines. However, analysts note that the current dynamics differ from 2021, when the movement was more abrupt and unbalanced.

“In the current cycle, growth has been supported by institutional participants and the launch of spot ETFs. Against this backdrop, corrections are becoming more moderate, within 10%–20%, making the trend more sustainable. Investors note that the lack of panic among major funds confirms long-term confidence in growth,” the researchers emphasized.

Another important factor remains open interest and funding stability in the derivatives market. After a brief decline, activity has begun to recover, indicating market participants are ready for a new upward movement. Therefore, the current decline likely reflects a healthy redistribution of market positions.

Source: cryptonews.net