According to the source, pullbacks are common in bull cycles and the market has already seen five major drawdowns over the past two years. According to Coinbase Institutional and Glassnode, Bitcoin (BTC) bull markets often experience 15–30% corrections driven by leverage resets and profit-taking. According to LookIntoBitcoin and Glassnode, traders are watching the 20-week moving average and the Short-Term Holder Realized Price as dynamic support during retracements. According to Binance Research and Kraken Intelligence, if momentum weakens further, the prior cycle high and the 100/200-day moving averages are commonly tracked as secondary support zones. According to CME Group, Glassnode, and CryptoQuant, funding rates, futures open interest, and stablecoin netflows are key positioning metrics used to gauge when a pullback is maturing.

According to CrypNuevo, altcoins are currently showing resilience against today's market drop. The analyst expects these cryptocurrencies to surge quickly once Bitcoin stabilizes or experiences a relief rally. CrypNuevo indicates concern only if Bitcoin loses the 1W50EMA, but otherwise views the current situation as a bullish market correction, presenting a strategic buying opportunity during dips. Source: CrypNuevo.

According to CryptoMichNL, the cryptocurrency market capitalization has likely reached its lowest point. With global liquidity on the rise, the typical bull market correction appears to be completed following a high-time-frame (HTF) retest.