Every bull market has seen sharp corrections before reaching new highs. Previous cycles saw declines of up to 94%, while recent cycles have seen “gentler” corrections.

Source: Glassnode

The ongoing correction, represented by the sharp drop in the 2022 cycle, suggests that Bitcoin may still be in a correction phase after reaching its most recent all-time high (ATH). However, this drop appears to be relatively mild compared to previous cycles – a sign that there may be some further corrections before Bitcoin can resume its upward momentum.

Source: TradingView

In the most recent trading session, Bitcoin crossed above its 50-day moving average (yellow line), with the price increasing by more than 3%, from $60,279 to $62,518.

This could be a sign that the asset is preparing to build positive momentum.

If Bitcoin can break above key resistance levels, this could signal the start of the next bullish phase.

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