"Bitcoin plunge, historically repeated corrections… no abnormality in fundamentals"
Summary
- Recently, Bitcoin plunged by nearly 25%, weakening investor sentiment.
- Market analysts evaluated that this plunge is a historically repeated typical pattern and does not deviate from the long-term trend.
- Analysts said this decline is a mechanical drop due to excessive leverage liquidations, not a deterioration in fundamentals.
Recently, Bitcoin (BTC) plunged by nearly 25%, severely weakening investor sentiment, and on-chain and market analysts assessed that this correction is a 'typical pattern' that does not deviate from the long-term trend.
On the 18th (local time), Kobeisi Letter said via X, "Since 2017, Bitcoin has experienced more than ten -25% corrections, six -50% corrections, and three -75% corrections. However, all corrections were followed by strong recovery phases, and the current magnitude of decline is not uncommon in the Bitcoin market but a repeated cycle," it diagnosed.
It added, "The current decline is not due to deterioration in fundamentals but a mechanical decline caused by excessive leverage liquidations." It said there is no fundamental change in key indicators such as Bitcoin network activity, long-term holder metrics, and structural demand from ETFs.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
