CryptoQuant data shows Bitcoin has pulled back by about 12% since reaching about $123,000. What looks like a sharp correction is far from a cause for alarm in historical perspective.
Bitcoin has endured a maximum drawdown since March 2024, when this bull cycle’s first all-time high was made, of -28%. Big retracements in past periods within this bull cycle have traditionally come within -20% and -25%.
By those standards, this decline is still moderate. Such corrections serve naturally as a resetting. They eliminate high-leverage positions in the derivatives market, dampen excessive optimism, and grant long-term investors new chances to position. In a mature cycle, such setbacks generally solidify the foundation underlying the next push.
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Market expert observations align with the on-chain picture. Each main drop back down to local highs this cycle has retreated within the 20–25% levels.
With only -12% corrected so far, there’s still room for further travel without breaching the overall trend up. That type of behavior helps validate the interpretation that such dips aren’t a weakness but part of the natural cycle flow.
Pullbacks fuel future growth. They allow resting spots that confirm momentum preceding another charge upward. Experience shows that these moments of weakness rarely alter overall direction during strong bull markets. Instead, they allow relief preceding a resumption of the trend.
Merlijn The Trader, a well-known market expert, refers to evidence that the correction could already be running out of steam.
He emphasizes a bullish crossover forming on the charts and a key trendline closing in on a breakout. If these work out, they can shift sentiment very quickly.
His projection has a near-term target in the $120,000 or higher area. That would not only recoup recent losses but mark new traction. While markets remain volatile, such technical setups often precede sharp actions.
Bitcoin could switch out of a corrective phase into a new upside push if things are in alignment.
Bitcoin’s recent drop is within a known process and not an exception. On-chain evidence, market opinions, and technical levels suggest the downtick is natural and potentially nearing completeness.
History shows that within bull runs, downticks such as this usually lead to the next explosive move upward.
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