Bitcoin’s recent price drop has sparked debate among investors about whether it signals the end of the current bull cycle. However, a closer look at long-term metrics suggests that this downturn may be a buying opportunity.
According to CryptoQuant’s Avocado Onchain, investors who entered the market during Bitcoin’s peak at $98,000 are in a loss-making position. Those who invested between one to three months ago can still benefit from lower realized prices of around $71,000.
Historical patterns show that similar corrections have occurred before and have often been followed by rebalancing and growth. The 30-day moving average of the short-term SOPR metric indicates that recent market participants are selling at a loss, suggesting that the correction may be subdued rather than indicating the end of the cycle.
The analysis highlights the importance of distinguishing between short-term corrections and broader trend movements. Bitcoin has shown a tendency to rebound after past corrections, reinforcing the idea that this downturn may not mark the end of the bull cycle.
For investors who have yet to enter the market, this correction presents an opportunity to buy Bitcoin at a discount. Adopting a long-term perspective and dollar-cost averaging strategy could be more effective than succumbing to panic selling during short-term downturns.
Source: https://www.tradingview.com/news/newsbtc:c0ab0ac88094b:0-bitcoin-drops-below-98k-is-this-the-perfect-buying-opportunity-for-investors