AMBCrypto - 11/26/2024 11:50:37 PM - GMT (+0 )
- An analyst has warned that a Bitcoin pullback of up to 30% could be on the horizon.
- This comes despite the strong bullish sentiment and expectations of a continued rally.
Bitcoin [BTC] 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.
While this drop may indicate a healthy correction, 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.
“Even in a parabolic bull run, Bitcoin can see -30% pullbacks”
He noted, referencing historical data to back his claim.
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.
Based on his analysis, BTC’s current rally could see a similar correction. Such pullbacks, while unsettling, are part of a healthy market cycle and often precede further gains.
However, the analyst advises caution as the market navigates this phase.
Transaction volume and active address surgeBitcoin’s network activity is gaining momentum, with sharp increases in transaction volume and active addresses—both key indicators of a potential rally.
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, reinforcing the possibility of bullish momentum building up.
Active addresses are calculated based on unique wallets participating in BTC transactions (sending or receiving) over a given period, in this case, the past 24 hours.
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.
If this upward trend continues, Bitcoin could regain momentum and move higher in the days ahead.
Exchange reserves slide furtherBitcoin exchange reserves, which track the total supply of BTC held across exchanges, 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—a trend that shows no signs of slowing.
Such a decrease typically signals that market participants are moving their BTC to self-custodial wallets, prioritizing personal control over their assets.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
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.
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