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Is Bitcoin in a Bull Market or a Correction? Analyst Responds by Explaining the Differences! - Coin Bulletin
Following the recent pullback in Bitcoin, investors are questioning whether this is just a regular correction or the beginning of a new bear cycle
The author DanCoinInvestor of the on-chain data and analysis platform CryptoQuant stated that the current situation is most likely a typical correction. According to the analyst, since the previous price increase was limited, there has been no overheating in the market. This situation indicates that downward risks may also be limited.
Differences Between Bear Cycle and Typical Correction
According to on-chain data, a strong upward trend is usually observed before the bear cycle begins. This rise causes investors to write profits above their average costs. However, when the price falls below this cost, there is a significant drop in net profit margin.
In contrast, in a typical correction, both the price increase and the decrease in profit margins remain much more limited. This scenario may indicate that the market is experiencing a healthier pullback, as it is currently.
According to experts, the current state of Bitcoin seems more like a controlled correction. This indicates that investors should evaluate the process more cautiously rather than panicking.