Bitcoin's recent 12% pullback has drawn attention, but on-chain data indicates that this correction is a normal phase in the market.
Correction Within a Bull Market
CryptoQuant's on-chain analysis shows that the fall from its all-time high of $123,000 to near $108,000 is in line with past corrections. The study points out that such moves help the market adjust after periods of strong growth. Historical data shows that corrections of 20–25% are often recorded even during strong rallies.
Signs of an Oversold Market
Other data suggests that Bitcoin is now in an oversold state, which may set the stage for renewed momentum. The price has repeatedly tested the $107,000 area without breaking lower, indicating strong buying interest at that level. Some market watchers anticipate a recovery once Bitcoin surpasses key resistance levels.
Resistance at $110,000
Analysts also point to $110,000 as a strong resistance area, keeping Bitcoin within a narrow range. Analyst Bitcoin Vector noted that Bitcoin remains compressed under this price point. He explained that downward pressure has eased, but the market still needs a decisive move to break higher.
The ongoing correction appears to be part of a healthy cycle, as data suggests it is removing excess leverage and stabilizing risk levels. Analysts agree that such corrections are a common feature of bull markets and often serve as a reset for future moves.
