Greed

Bull Market

Bitcoin

Daily

Bitcoin went through one of its most spectacular runs in recent history since the US elections three weeks ago, skyrocketing from under $70,000 to just shy of $100,000.
After gaining more than $30,000 in less than a month, it was almost inevitable that the asset would eventually retrace, which happened yesterday as BTC was rejected at $99,000 and pushed south hard by over six grand in hours.
<h2 id="warnings">Warnings</h2>
There were some warning signs about a pullback, though. CryptoQuant’s <a href="https://cryptoquant.com/insights/quicktake/674465e9114d3c55e6982c84-Bitcoin-FOMO-Driven-Rallies-and-the-Looming-Risk-of-Profit-Taking-Pressure?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=quicktake&amp;utm_content=it-tech" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">analysts</a> outlined a few factors that contributed to this correction, including Short-Term Holders (STH) taking profits since their bags increased by 40-50% within weeks against the dollar. Although this meant that there could still be a chance to run at $100,000, the most probable scenario envisioned a price drop.
The fear of missing out (FOMO) levels were on the rise as well, which typically signals a potential local top. Additionally, the Fear and Greed Index, the metric showcasing the current market sentiment, was <a href="https://cryptopotato.com/bitcoin-fear-and-greed-index-hits-3-5-year-high-does-it-hurt-btcs-chances-for-100k/" data-wpel-link="internal" rel="noopener noreferrer nofollow">deep in ‘greed’ territory</a> for weeks. After all, we all know Warren Buffett’s advice to sell when others are greedy.
As reported earlier, many analysts on X outlined that such a price decline after a massive rally is to be expected. In fact, they even <a href="https://cryptopotato.com/bitcoin-dips-below-93k-after-45-rally-how-low-will-btc-go/" data-wpel-link="internal" rel="noopener noreferrer nofollow">warned</a> that BTC had pulled back a lot harder in previous bull cycles, meaning that the asset’s bottom might not have reached yet.
<h2 id="on-chain-data-says-bull-market-still-on">On-Chain Data Says Bull Market Still On</h2>
CrytpoQuant’s MAC_D analyst also <a href="https://cryptoquant.com/insights/quicktake/6745080be1767374b978b574-BTC-Correction-Utilizing-Short-Term-SOPR-for-Accumulation-Opportunities?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=quicktake&amp;utm_content=mac_d" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">weighed in</a> on the matter, indicating that this price slump was “due to leverage overheating, as open interest and estimated leverage ratio reached annual highs.” They added that a similar or even larger correction of up to 20% “can be seen as a natural phenomenon.”
While another price drop seems likely for the short term, MAC_D highlighted a few on-chain metrics that suggest the bull market is still active and BTC hasn’t reached this cycle’s peak yet.
<blockquote>
 “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.”
</blockquote>
The short-term SOPR metric jumped to almost 1.1 on November 21, meaning that STHs had begun realizing profits, which could actually be good news for BTC.
<blockquote>
 “Historical patterns show that when short-term investors sell Bitcoin at a loss, it often leads to a rebound.”
</blockquote>
<h2 id="whales-keep-buying">Whales Keep Buying</h2>
And while short-term holders seem to be offloading their assets, some even at a loss given the billions of dollars <a href="https://cryptopotato.com/the-battle-for-100k-depends-on-these-bitcoin-addresses-itb/" data-wpel-link="internal" rel="noopener noreferrer nofollow">accumulated</a> at prices of around and over $97,000, whales stand on the opposite corner.
Lookonchain data shows that five fresh wallets had withdrawn $86.4 million in BTC from Binance even before the crash.
<blockquote class="twitter-tweet">
 Whales continue to accumulate <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$BTC</a>!
 In the past 5 hours, 5 fresh wallets withdrew 886 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$BTC</a>($86.4M) from <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Binance</a>.
 Address: bc1qqjyqej2llypzvz7nx8fd4pd2vsyfcxjug8z45g bc1qlwa9n5qgjaa8rutm8pd64nv7xms2c37p2h0ver bc1qvjvcpehcrdneqeqhmqzdrday88cx0h2munprec… <a href="https://t.co/TI1bZxXNhA" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/TI1bZxXNhA</a>
 — Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1861049241847963802?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">November 25, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
And, let’s not forget MicroStrategy. The Saylor-founded company <a href="https://cryptopotato.com/microstrategy-breaks-its-own-record-another-massive-purchase-for-55500-btc-worth-5-4b/" data-wpel-link="internal" rel="noopener noreferrer nofollow">announced</a> another mind-blowing purchase worth nearly $5.5 billion yesterday, pushing its total holdings to almost 387,000 BTC.
The post <a href="https://cryptopotato.com/bitcoin-dumped-by-6k-daily-but-these-on-chain-metrics-suggest-bull-market-is-still-on/" rel="noopener noreferrer nofollow">Bitcoin Dumped by $6K Daily But These On-Chain Metrics Suggest Bull Market Is Still On</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Bitcoin Dumped by $6K Daily But These On-Chain Metrics Suggest Bull Market Is Still On

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