Bitcoin Correction Deepens, But $100K Target Remains in Sight
A Bitcoin (BTC)-driven crypto market correction extended into its third consecutive day, with BTC shedding another 3.5% over the past 24 hours. The cryptocurrency now hovers near $94,000, retreating from its recent surge that brought it tantalizingly close to the $100,000 milestone for the first time.
The pullback has eroded Bitcoin’s weekly gains from over 10% to a modest 3%, as investors locked in profits amid expectations of a short-term decline. The downturn has also weighed on major altcoins, with Solana (SOL), Binance Coin (BNB), Cardano (ADA), and Dogecoin (DOGE) falling by as much as 7% in the same timeframe.
The broader crypto market has followed suit, with the CoinDesk 20 Index (CD20), which tracks the largest tokens by market capitalization (excluding stablecoins), dropping nearly 3% over the past day.
Correction Seen as “Healthy Retracement”
Despite the recent dip, market analysts remain optimistic, maintaining a short-term target of $100,000 for Bitcoin. They view the current correction, which could extend as low as $92,000 (a decline of roughly 10% from the recent peak), as a “natural phenomenon.”
“This correction occurred due to leverage overheating, as open interest and estimated leverage ratio hit annual highs,” noted MAC_D, an independent analyst at CryptoQuant, in a Tuesday report. “A 10-20% correction is therefore a natural response.”
On-Chain Metrics Signal Bullish Continuation
From an on-chain perspective, Bitcoin’s current cycle metrics—including MVRV (Market Value to Realized Value), NUPL (Net Unrealized Profit/Loss), and the Puell Multiple—indicate that the asset remains firmly in a bull market with substantial upward potential.
“The key during these corrections is identifying major accumulation opportunities,” MAC_D explained. “The ‘Short-Term SOPR’ metric (Spent Output Profit Ratio) is particularly useful for spotting these periods.”
Volatility Ahead
While the pullback has dampened short-term enthusiasm, analysts caution that volatility is likely to persist. However, the broader outlook remains bullish, with many investors treating the current correction as a healthy reset within a larger upward trend.
For now, Bitcoin’s path to $100,000 may face choppy waters, but market participants are watching closely for signs of renewed momentum.
