Bitcoin (BTC) had entered a period of price correction following its ascent to an all-time high of $73,700. Miners, whales, and other market participants, including large investors, had begun selling their BTC to make profits.

However, analysts at CryptoQuant believe the Bitcoin bull cycle is far from over, as price valuation metrics are largely shy from levels seen in past market tops.

BTC in Correction Mode

The Bull-Bear Market Cycle Indicator flagged an overheated-bull phase last week as BTC plummeted from $73,700 to $60,700. The decline was triggered by traders offloading their stash to realize high-profit margins.

CryptoQuant found that unrealized profit margins soared to 69%, its highest level since March 2021, when BTC was trading at around $60,000. Although traders are selling their assets, unrealized profit margins are still at high levels of 47%.

“Indeed, short-term Bitcoin holders (including traders) sold Bitcoin at the highest profit margin since May 2019. This signals that short-term Bitcoin holders took profits after this last price that took Bitcoin to a fresh all-time high,” analysts said.

Large BTC holders also offloaded their assets as prices soared above $70,000. Altogether, they moved 567,000 BTC when the digital asset touched its all-time high on March 12, representing 35% of total transfers on the Bitcoin network.

CryptoQuant said some of the large holders are Bitcoin miners. Miners saw record-high daily revenues due to Bitcoin’s last rally, and there was a notable uptick in their BTC transfers to over-the-counter desks as the crypto asset crossed $70,000.

Bull Cycle Far From Over

Furthermore, demand for BTC in the United States has eased off, as seen in the Coinbase Premium, which turned negative shortly after BTC hit $73,000. Analysts noted that if the correction persists, BTC could fall to the $58,000-$60,000 level, which is the cost basis of large short-term holders.

From a longer-term perspective, BTC has yet to touch this bull cycle top, as shown by the low levels of new investment flows. Currently, around 48% of Bitcoin investments come from short-term holders, while historically, bull cycles usually end with 84%-92% of investments from this cohort of investors.

“Moreover, valuation metrics are not yet near levels consistent with past market tops. CryptoQuant P&L Index is still outside a market top zone (red area) and above the index 1-year moving average,” analysts added.