Analysts: Bitcoin pullback is a short-term correction, not a cyclical top.

According to a recent research report by Bernstein, Bitcoin's pullback of approximately 25% from its early October high is more likely a "short-term correction" than the top of this cycle. The report points out that while some investors sold off in advance based on the historical four-year cycle pattern, the current market structure is significantly stronger than in historical cycles.

Analysts point out that in the past six months, long-term investors holding positions for more than a year sold approximately 340,000 BTC (about $38 billion), but this was almost entirely absorbed by a net inflow of about $34 billion from spot ETFs and corporate treasuries. The institutional holdings in Bitcoin ETFs have also increased from 20% at the end of 2024 to the current 28%, indicating a more stable holding structure.

Regarding concerns that Strategy (formerly MicroStrategy) might sell Bitcoin due to a price drop, Bernstein analysts emphasized that the company's management has confirmed that it will not sell any BTC, and its $61 billion holdings and corresponding $8 billion in debt remain manageable.

The research report argues that Bitcoin's current price action does not resemble a cyclical top, but rather a regular pullback within a multi-year trend involving institutional participation; if it can stabilize around $80,000, this pullback may present a potential entry opportunity. (The Block)