Based on CryptoQuant's data, Bitcoin has entered a 'bullish cooldown' phase characterized by slowing price momentum and profit-taking by long-term holders.
Bullish Cooldown Phase
According to CryptoQuant, Bitcoin is currently experiencing a slowdown, with a reduction in price surge and profit realization from long-term investors. CEO of CryptoQuant, Ki Young Ju, mentioned that this phase involves profit-taking and a decrease in risk appetite. Analyst Axel Adler Jr. noted that this cycle may present opportunities for minor short-term corrections without transitioning to a bearish phase.
Institutional Investors Under Scrutiny
The current phase does not indicate immediate sharp declines, but institutional investors and ETFs are under careful observation due to their potential influence on market direction. Long-term holders selling at peaks indicates possible cycle tops. Conversely, a decline in profits for short-term holders may lead to losses during corrections. In this context, the Bull Score Index remains above 50, indicating stable yet volatile developments.
Historical Data and Future Insights
Analysts are comparing current data with previous corrections that occurred between March and October 2024. Although current corrections are less intense due to moderated profit-taking pressure, historical trends suggest a healthy consolidation phase rather than steep declines. Axel Adler Jr. highlights that slowed whale accumulation may indicate possible consolidation, aligning with data-driven forecasts predicting continued cycle maturity.
In light of current data and expert analysis, Bitcoin showcases phases that may lead to stable consolidation. Investors are encouraged to closely monitor macroeconomic factors and institutional interest dynamics.
