- Bitcoin rebounds above $85,000 with a 2.7% weekly gain, sparking renewed market optimism.
- Analysts see its recent 23–30% drop as normal correction, not the end of the bull cycle.
- Money supply at an all-time high; BTC could hit new ATH by April, says Dave Weisberger.
Bitcoin’s recent price rebound above $85,000 after weeks of declines has sparked fresh optimism. The digital asset experienced a 2.7% increase in the past week, showing signs of recovery after the recent downturn. Crypto enthusiasts and analysts have begun to debate whether the market is simply undergoing a correction or if the bull market is still very much alive.
In a recent post titled “Past Bull Cycle vs. Current Market,” CryptoQuant analyst Crypto Dan offered a detailed comparison of the present Bitcoin market with past bull cycles. He explained that while bear markets can feel long and painful, they also offer valuable accumulation opportunities for seasoned investors.
He pointed out that previous market downturns were characterized by significant stop-loss movements, leading to prolonged sell-offs and bearish sentiment. However, in this current cycle, such drastic liquidations have been largely absent.
Bitcoin’s Drop Within Normal Correction
Despite Bitcoin’s price struggles in recent weeks, Dan remains optimistic about the broader market trend. The analyst emphasized that while fear of a bear market persists, Bitcoin’s recent drop has stayed within a standard 30% correction range. Macroeconomic factors, including inflation and interest rates, may still weigh on market sentiment, but Dan is confident that the bull market is far from over.
Similarly, Alex Wacy, a researcher, points out that its 23% decline is a normal market correction rather than the end of its bull cycle. In the previous cycle, BTC experienced 12 similar pullbacks before ultimately reaching its peak. This decline follows a period of market overheating and excessive leverage, leading to a natural cooldown. However, a strong new narrative, like DeFi in 2020 or NFTs in 2021, is needed to drive renewed momentum.
Macroeconomic conditions, including high interest rates and tight liquidity, are also influencing the market. Wacy notes that if the Federal Reserve shifts its monetary policy later this year, risk assets like BTC could see significant gains.
Bitcoin Still in Price Discovery Phase
Analysts have presented diverse perspectives on Bitcoin’s market structure and future trajectory. Swyftx lead analyst Pav Hundal emphasized stability, assuring investors that panic is unnecessary. Concerns over US President Donald Trump’s tariffs may unsettle markets, yet economic indicators suggest positive momentum.
Hundal added that risk assets, including BTC, typically rise when investors regain confidence. The global M2 money supply recently reached record levels, signaling potential upward movement for cryptocurrency. Analyst Seth reinforced this outlook by highlighting another all-time high in global liquidity, indicating favorable conditions for a Bitcoin rally.
CoinRoutes CEO Dave Weisberger noted that if BTC maintains its historical correlation with the money supply, a new all-time high could emerge within a month. Meanwhile, Wacy pointed out that Bitcoin remains in price discovery, leaving room for higher targets, including $200K, over the long term.
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