Bitcoin Correction Signals Mid-Cycle Reset, Not End of Bull Cycle

CryptoQuant contributor CryptoZeno believes that the ongoing Bitcoin correction is not the end of the current bull cycle, but rather a mid-cycle reset. He examined two key metrics: Long-Term Holder MVRV and Adjusted Net Unrealized Profit/Loss (NUPL). According to these indicators, long-term investors remain committed to holding their coins, even as prices have declined.

CryptoZeno notes that Bitcoin's adjusted MVRV is far below levels typically associated with heavy profit-taking by long-term holders. This suggests that the market is undergoing a reset rather than a rush to sell. Furthermore, the average price paid for Bitcoin by these long-term holders continues to rise, indicating that they are not selling their coins due to losses.

The NUPL indicator also shows that investors' unrealized profits have declined significantly following the recent price correction. Historically, this type of movement has signaled a market reset rather than the beginning of a prolonged bear market.