Recent on-chain data analysis indicates that Bitcoin has undergone a typical price correction within a normal range and is nearing an oversold state.

CryptoQuant analyst Darkfost released his analysis on Wednesday, noting that the price had adjusted for two weeks following its all-time high of $123,000, dropping about 12%. He says this movement is well within a normal range compared to historical data.

Healthy Pattern in a Bull Market

This analysis refutes recent speculation that Bitcoin’s bullish cycle has ended, calling such interpretations excessive. He points out that since breaking its previous all-time high in March 2024, Bitcoin has experienced price fluctuations as large as a 28% drop. Typically, a “deep” correction is considered a 20-25% drop on average.

“This correction is nothing particularly unusual, and Bitcoin’s upward pattern could continue,” Darkfost stated. He described such corrections as a healthy and frequent phenomenon in a bull market, serving to reduce excessive leverage from derivatives and offer new entry opportunities for long-term investors.

Bitcoin: Now in an Oversold State?

The analysis that Bitcoin is in an oversold state is also gaining traction, as the price has repeatedly bounced back instead of falling below the $107,000 level.

Frank, a quant investor active on X, s