Key Points
- An analyst predicts a possible Bitcoin pullback of up to 30% despite the current bullish sentiment.
- Bitcoin’s network activity shows signs of potential rally with increase in transaction volume and active addresses.
Despite the strong bullish sentiment and expectations of a continued rally, an analyst has warned that a Bitcoin pullback of up to 30% could be imminent.
Bitcoin’s Recent Performance
Bitcoin has shown remarkable strength in recent weeks, surging 39.51% over the past month and lifting its market cap to $1.85 trillion. However, the past 24 hours have seen a 5.15% decline, signaling a potential pause in the uptrend.
Despite this drop, bullish fundamentals remain. Bitcoin could regain momentum and resume its climb after this period of consolidation.
Potential BTC Correction?
Crypto analyst King Young Ji has cautioned that BTC may face a significant corrective move before resuming its upward trajectory. He pointed to Bitcoin’s performance during the 2021 bull run, where prices surged from $17,000 to $64,000. Despite the strong rally, BTC experienced five notable corrections.
The smallest drop was 10%, while the largest reached 28%, highlighting the volatility of even bullish market phases.
Bitcoin’s network activity is gaining momentum, with sharp increases in transaction volume and active addresses. Active addresses have surged to 1,276,535, a level last seen in May. This rise is accompanied by a 56.27% jump in transaction volume.
Meanwhile, token transfer volume has rebounded strongly after a sharp decline the previous day. Over $1 million worth of BTC has been moved, reflecting renewed investor activity.
Bitcoin Exchange Reserves Continue to Decline
Bitcoin exchange reserves have continued to decline. Over the past seven days, reserves have dropped by 2.75%, with just 2,507,706 BTC available on exchanges at press time.
Such a decrease typically signals that market participants are moving their BTC to self-custodial wallets, prioritizing personal control over their assets.
This behavior often aligns with long-term bullish sentiment, as investors reduce the supply available for trading or selling. If this trend persists, it could reinforce a bullish outlook for Bitcoin, potentially driving the asset’s price higher as supply on exchanges dwindles further.
