This Pattern Has Emerged Three Times Since Late 2023, Triggering BTC Price Corrections

Bitcoin has recently faced selling pressure after testing key support levels, dropping to around $98,951. This decline is attributed to long-term holders reducing their BTC supply from 14.7 million to 14.4 million, marking the third major wave of profit-taking since late 2023. The 365-day simple moving average (SMA) and 365-day exponential moving average (EMA) play crucial roles as support levels, both of which have been pivotal in past price actions. Previous instances of significant price corrections occurred when Bitcoin tested these averages, notably in August 2024 and April 2025. The drop has raised concerns over the sustainability of the current bull market, indicating potential corrections of more than 10% following rallying phases. This pattern reflects ongoing market dynamics as long-term investors react to market conditions, leading to cautious trading behavior and increased volatility.

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