Bitcoin sellers have been unable to catalyze a traditional bull market correction during this cycle, according to a new analysis posted by Checkmate, an anonymous on-chain analyst at Glassnode. The analysis reveals that BTC price drawdowns have not exceeded 20%.

Bitcoin has experienced small corrections despite pulling back from its recent all-time highs near $74,000. These corrections are mild when compared to historical bull markets. Checkmate shared data from his charting suite, Checkonchain, indicating that the market has only dropped by a maximum of 20%, with subsequent drawdowns staying below 15.8%. Checkmate expressed his sentiment by stating that the market is handling hundred million dollar sell-side days and that bears have not yet achieved a 20% pullback.

For context, the previous bull market cycle from 2019 to 2021 witnessed two pullbacks of over 50%, with an outlier during the COVID-19 pandemic in March 2020 at 61.4%. Despite these figures, Checkmate noted that historical statistics show that a significant pullback may still be on the horizon.

Bitcoin’s market dynamics have shifted significantly in 2024, with the introduction of United States spot Bitcoin exchange-traded funds (ETFs). These ETFs have purchased more than 500,000 BTC since their launch in January. The increased buy-side support, along with other factors like multi-year lows in BTC balances on exchanges, is driving bullish sentiment for a potential return to price discovery.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, warned observers not to be overly optimistic about the performance of ETF products. He emphasized that despite impressive inflows, bitcoin's price would likely be much lower without the influence of ETFs.

This article is meant for informational purposes only and does not offer specific investment advice. It is important for readers to conduct their own research and analysis before making any investment decisions.