Key Points
- An analyst has predicted a potential Bitcoin pullback of up to 30%, despite a strong bullish sentiment.
- Bitcoin’s network activity is increasing, with a surge in transaction volume and active addresses indicating a potential rally.
Despite the strong bullish sentiment and expectations of a continued rally, an analyst has warned that a Bitcoin pullback of up to 30% could be on the horizon.
Bitcoin [BTC] has shown remarkable strength in recent weeks, surging 39.51% over the past month and lifting its market cap to $1.85 trillion.
Potential BTC correction?
Crypto analyst King Young Ji has cautioned that BTC may face a significant corrective move before resuming its upward trajectory. He noted, referencing historical data to back his claim.
He pointed to Bitcoin’s performance during the 2021 bull run, where prices surged from $17,000 to $64,000. Despite the strong rally, BTC experienced five notable corrections.
The smallest drop was 10%, while the largest reached 28%, highlighting the volatility of even bullish market phases.
Transaction volume and active address surge
Bitcoin’s network activity is gaining momentum, with sharp increases in transaction volume and active addresses—both key indicators of a potential rally.
Active addresses have surged to 1,276,535, a level last seen in May. This rise is accompanied by a 56.27% jump in transaction volume, reinforcing the possibility of bullish momentum building up.
Active addresses are calculated based on unique wallets participating in BTC transactions (sending or receiving) over a given period, in this case, the past 24 hours.
Meanwhile, token transfer volume has rebounded strongly after a sharp decline the previous day. Over $1 million worth of BTC has been moved, reflecting renewed investor activity.
Bitcoin exchange reserves, which track the total supply of BTC held across exchanges, have continued to decline. Over the past seven days, reserves have dropped by 2.75%, with just 2,507,706 BTC available on exchanges at press time—a trend that shows no signs of slowing.
Such a decrease typically signals that market participants are moving their BTC to self-custodial wallets, prioritizing personal control over their assets.
