Bitcoin closed August on a bearish note despite recording its new all-time high within the month. Following this notable downside performance since hitting new highs, speculations about a bear market phase are becoming rampant in the community. While sentiment is leaning toward a bear market phase, on-chain metrics suggest that BTC’s bull run is still on.

Correction Hits Bitcoin, Yet Metrics Defy Cycle Top Narrative

Bitcoin has fallen sharply to the $107,000 price mark, but Carmelo Aleman, a market expert, has shared an insightful analysis in a quick-take post on the CryptoQuant platform, suggesting that the ongoing bull market cycle may be far from over. Indicators monitoring investor behavior, network activity, and long-term holder strength keep showing underlying resiliency, even as BTC’s price drops.

The expert noted that the recent drops in the price of Bitcoin have raised questions about whether we are in the midst of a healthy correction or a cycle top. However, BTC reserves on exchanges continue to decline, indicating modest selling pressure. Additionally, on-chain data continues to show hints of accumulation by long-term investors despite the pullback.

Aleman continued by highlighting that before hitting new highs, Bitcoin bull cycles have historically been characterized by periods of severe correction. Meanwhile, institutional adoption, spot ETFs, and increased interest in tokenization

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Author: Godspower Owie