Bitcoin falls below $98,000: is this the perfect buying opportunity for investors?

Bitcoin, the leading cryptocurrency by market capitalization, has recently experienced a significant and sudden price correction, sparking debate among investors.

Concerns have been raised about whether this slowdown indicates the conclusion of the current bullish cycle or it simply represents a temporary setback.

While short-term holders face losses, long-term metrics provide a broader perspective on Bitcoin’s trajectory, as CryptoQuant’s Avocado Onchain analyzed in a recent report.

Opportunity or end of the bullish cycle?

According to Avocado Onchain, the price realized for investors who entered the market during Bitcoin’s recent spike in $98,000 places in a loss situation.

However, for those who invested between one and three months ago, the realized price is significantly lower at $71,000, offering a cushion against the current correction.

Avocado noted that the historical patterns of Bitcoin’s 2021 bull cycle reveal similar alternations between all-time highs and sharp corrections, suggesting that these dips may not necessarily signal the end of the cycle. Rather, they have historically been “opportunities” for market rebalancing and subsequent growth.

A key indicator analyzed is the 30-day indicator. moving average of the SOPR (spent production profit ratio) in the short term. This metric tracks whether recent market participants are selling at a profit or loss.

Current SOPR data reveals that recent short-term inflows into Bitcoin have not yet resulted in substantial profit taking. Unlike previous cycle peaks characterized by aggressive selling, the ongoing correction appears moderate, indicating that the market may still have room for an upward move.

Bitcoin Short-Term Dips vs. Long-Term Trends

Additionally, Avocado Onchain highlights the importance of distinguishing between short-term corrections and broader cyclical trends. Bitcoin’s trend to bounce after corrections in past bull cycles reinforces the idea that the current slowdown might not mark the end of the cycle.

These insights align with the behavior of long-term holders, who often use corrections to consolidate their positions, strengthening market resilience.

Avocado concluded the analysis by noting:

For investors who have not yet entered the market, this can be an excellent opportunity to buy Bitcoin at a discount. Rather than succumbing to panic selling during short-term downturns, taking a long-term perspective and a dollar-cost averaging (DCA) strategy could be a more effective approach.

At the time of writing, Bitcoin is experiencing a gradual rally in its price, rising 1.3% in the last hour. Regardless, the asset still appears to be overshadowed by the bears as BTC is still down 3.5% in the past day and 10.5% from its high of $108,135 recorded last week.