Market experts: BTC price correction nears its logical conclusion

According to experts, Bitcoin's realized market capitalization, which reflects the true value of invested funds and the profits or losses of holders, has once again proven to be a key tool for assessing market cycles. According to Crazzyblockk, analyzing this metric through the lens of long-term and short-term holders helps understand how true wealth is being redistributed in the market and the phases it goes through. The study demonstrates that the current correction is nearing completion.

In July, when the BTC price reached around $120,000, the market entered a distribution phase. During this period, pressure from long-term holders, who decided to lock in profits after a prolonged rally, increased. At that time, the share of realized capitalization attributed to such investors was approximately 55%. This figure has since declined to 46%, reflecting an active redistribution of coins in favor of short-term participants.

Speculative traders' activity increased significantly in the fall. Many acquired bitcoins at prices close to the market price, making them more vulnerable to declines. When the price began to decline, some investors began selling at a loss, fueling bearish sentiment. However, the volume of coins transferred to new holders stabilized, which may indicate growing confidence in the asset among new traders.

Experts note that in recent months, the market has been exhibiting behavior typical of mature cycles. Long-term investors are partially locking in profits, while new entrants are actively accumulating positions, laying the foundation for the next upward impulse. This redistribution of liquidity typically precedes the end of a correction and the transition to a recovery phase. Despite the temporary weakening, analysts believe the market structure remains bullish.

Source: cryptonews.net