Just a week after Bitcoin (BTC) came within touching distance of the historic $100,000 milestone for the first time, the world’s largest crypto plummeted Tuesday in a crypto-wide correction.
BTC shed 3.4% of its value in the last 24 hours and is currently changing hands for $92,834 as of press time, according to CoinGecko data. Among the top 10 major crypto assets, Dogecoin and Cardano’s ADA took the biggest hits, while Ripple’s XRP and Solana (SOL) slipped by single digits over the same time frame.
But despite the epic sell-off, Ki Young Ju, CEO of CryptoQuant believes Bitcoin’s bull market remains intact, indicating that such pullbacks are typical during parabolic rallies.
Bitcoin Historical Patterns
Ki Young Ju explained in a Nov. 26 post on X that Bitcoin’s price pullback during the latest bull run aligns well with past behavior. According to Young Ju, Bitcoin has endured similar corrections after soaring to fresh price records.
Case in point, during its 2021 upsurge from $17,000 to nearly $64,000, BTC saw pullbacks of 10%, 28%, 25%, 16%, and 26%. The CryptoQuant CEO noted that these drawdowns are natural occurrences during market bull rallies rather than the start of a longer downward trend.
“This isn’t a call for a correction — just manage your risk and avoid panic selling at local bottoms. We’re in a bull market,” Young Ju summarized.
$100K Bitcoin Target Still Intact
Despite the bleeding, CryptoQuant independent analyst MAC_D remains unchanged at a short-term target of $100,000 per BTC, calling a correction of as much as 10% a “natural phenomenon.”
“This correction occurred due to leverage overheating, as open interest and estimated leverage ratio reached annual highs,” MAC_D stated in a Tuesday note. “Therefore, a 10-20% correction can be seen as a natural phenomenon.”
“From an on-chain perspective, cycle metrics such as MVRV, NUPL, and Puell Multiple still indicate that Bitcoin is in a bull market with upward potential. The key here is to identify major accumulation periods during corrections, with the ‘Short-Term SOPR’ metric being particularly useful,” MAC_D continued.
In the near-term, popular analyst Ali Martinez has observed that Bitcoin is showing bullish divergence against the RSI, which could help the top crypto’s price recover above the $95K- $96K range.