Bitcoin Faces 10% Pullback: Is the Bull Market at Risk Below $91,000?

On January 27th, an analysis by CoinDesk’s James Van Straten highlighted a significant market movement as Bitcoin dipped temporarily below $98,000, marking a substantial nearly 10% correction from its historic peak. This development has triggered skepticism among investors regarding the sustainability of the ongoing bull market. Following the victory of Trump in the U.S. presidential election, Bitcoin surged from approximately $66,000 to an impressive high of $109,000. Throughout this rally, investors have witnessed two notable pullbacks exceeding 15%, alongside multiple instances of price drops over 10%, which underscores that the current decline aligns with historical volatility. In assessing bullish market conditions, the Short-Term Holder Cost Basis emerges as a vital indicator, reflecting the on-chain moving average over the last 155 days. Presently positioned at around $91,000, a decline beneath this threshold could signal potential challenges for the continuation of the existing bull trend.