Bitcoin recently experienced a notable dip to approximately $98,000 before recovering above the $100,000 mark, according to insights from CryptoQuant analyst Avocado_onchain. Despite emerging concerns about a potential “double top” formation and a shift toward bearish sentiment, on-chain metrics have yet to signal any definitive warning signs. This suggests that Bitcoin remains in a phase of measured consolidation, accumulating momentum for future movements.
Analysis of the 30-day moving average of Binary CDD reveals that long-term holders continue to retain their positions, opting not to liquidate. Historically, a Binary CDD average surpassing 0.8 has indicated impending corrections; however, the current peak near 0.6 followed by a decline implies the market is not overheating. This subtle deviation from previous cycles points to a sustained consolidation period, potentially involving further price stabilization or temporal adjustments.
Crucially, this consolidation does not signify the termination of the ongoing bull cycle. Instead, it aligns with historical patterns where Bitcoin’s price advances in a “staircase-like” manner, characterized by intermittent pauses before renewed upward momentum. Past trends demonstrate that significant rallies often emerge during phases of subdued market attention and muted sentiment, positioning the current lull as a possible precursor to the next substantial upswing.