 ▲ Bitcoin (BTC) |
Analysis suggests that Bitcoin (BTC) is repeating historical patterns seen during major past correction phases, raising the possibility that the current downturn may represent a structural bottoming process rather than a short-term shock.
According to crypto-focused media outlet NewsBTC on February 14 (local time), market analysts noted that Bitcoin’s current price action—down about 50% from its all-time high—resembles key correction phases that occurred in the middle of previous bull markets. In past cycles, Bitcoin experienced multiple large pullbacks ranging from 30% to 50% during upward trends before forming new highs.
Analysts explained that historical data shows major bullish cycles were typically preceded by extreme fear in investor sentiment. Such psychological breakdowns triggered panic selling by short-term holders, adding pressure on prices. However, continued accumulation by long-term holders ultimately laid the groundwork for trend reversals.
A similar pattern is being observed in the current market. While weakening demand recovery and increased selling pressure from short-term holders have extended the decline, the share of supply held by long-term investors has begun to rise again. NewsBTC reported that these structural changes could represent a classic signal of a turning point ahead of a full-scale rebound.
Market experts identified the recovery of new demand and continued accumulation by long-term holders as key variables that will determine the likelihood of a rebound. Even amid heightened short-term volatility, if long-term capital inflows remain intact, the current correction may serve as a foundation for entering a new upward phase.
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