Analysts at CryptoQuant have noted that Bitcoin is currently in a phase of ‘quiet consolidation’, despite a recent price drop to $98,000 and concerns about the formation of a ‘double top’ pattern. Long-term holders continue to retain their assets without resorting to mass selling, indicating confidence in the potential for further growth.
This is reported by Finway
On-chain metrics: the market is not overheated
According to experts at CryptoQuant, even after the price decline, Bitcoin’s price quickly recovered, surpassing the $100,000 mark. Meanwhile, on-chain indicators do not show signs of market overheating or the end of the current bullish cycle. The key indicator—the 30-day moving average of the binary CDD (Cumulative Distribution of Days), which reflects the activity of long-term holders—remains at around 0.6. This is below the critical threshold of 0.8, after which deep corrections are typically observed.
“This time, the indicator peaked around 0.6 and began to decline, indicating a lack of overheating. Long-term investors are in no rush to take profits,” noted CryptoQuant.
Forecast: a new impulse may follow consolidation
Experts emphasize that the current situation is not a sign of the end of the bull market. On the contrary, history shows that powerful breakouts often occur when market sentiment is subdued and interest in crypto assets declines. This may indicate preparation for the next wave of growth.
It is expected that Bitcoin may go through an additional period of consolidation, which will last either through time or through price changes, before starting a new upward impulse movement.
“We are likely witnessing another stage of a stair-step movement, where a new jump follows a period of calm,” concluded CryptoQuant.
Previously, analysts from the same platform noted an increase in buying activity among investors from the U.S., which is seen as a signal for the continuation of the bullish cycle. At the same time, on-chain metrics indicate that interest in altcoins remains critically weak.