Key Insights:
- In the latest Bitcoin news, a top analyst said Bitcoin’s drop 19% from the all-time high is not enough reason to signal the cycle top.
- In past cycles, large liquidations like the recent $40 billion sell-off have often dragged Bitcoin into a prolonged correction or triggered cascading selloffs.
- Despite this, the cryptocurrency still holds momentum above $108,000.
The latest Bitcoin news documents the top four reasons why BTC has not yet reached its cycle peak as per an analysis by top analyst Rekt Fencer.
According to him, Bitcoin is down by a small margin from its all-time high which is barely sufficient reason to signal a bear market. At the same time, the market hit liquidations worth roughly $40 billion but Bitcoin still managed to hold above $108,000.
These and other two reasons provide sufficient proof that Bitcoin price has more room to skyrocket, says the analyst.
Bitcoin Price Is Down 19%
Bitcoin dropped 19% from its all-time high and has sparked another round of “top is in” chatter across social media.
However, in the context of historical market behavior, a move of this size barely registers as a warning sign for an incoming bear market.
In every major bull cycle before, Bitcoin has faced corrections of 20% to 30% and sometimes even more. These corrections have taken place without losing its long-term uptrend. As per analyst Rekt Fencer, the current pullback from the all-time high is perfectly normal behavior for Bitcoin price.
A 19% drawdown, while uncomfortable in the short term, is often the market’s way of cooling down after a heated rally. It allows overextended traders to reset and gives stronger hands a chance to accumulate.
The price action remains far from the kind of blow-off volatility that typically defines a true market peak.
Market Liquidation Hit $40 In October Yet Bitcoin Held $108,000
Uptober’s terrific liquidation valued at roughly $40 billion swept through the crypto markets and shook out leveraged traders which led to massive fear and doubt across social media.
Yet despite the sheer scale of this event, Bitcoin price has held firm above $108,000.
In past cycles, such deep liquidations often dragged Bitcoin into a prolonged correction or triggered cascading selloffs.
However, instead of capitulating, the market absorbed the hit and stabilized. Thereby providing a signal for strong demand which absorbed selling pressure.
Moreover, maintaining a six-figure price level after a $40 billion liquidation event reflects the growing maturity of Bitcoin’s market structure which is now held together by deeper liquidity, broader institutional participation, and a more balanced mix between spot and derivatives.
Gold and Stocks Pumping While BTC Price Lags
Gold recently skyrocketed to become the world’s first asset to attain a market cap of $30 trillion, stocks on the other hand, have also been soaring to record highs. As such, Bitcoin’s recent underperformance is seemingly like the digital asset is losing momentum as traditional markets heat up. According to Rekt Fencer, that perception misses the bigger picture.
Bitcoin’s lag, in this case, is less a sign of weakness and more a mirror of how capital cycles flow across markets.
Historically, Bitcoin tends to move in waves that follow broader liquidity trends. When traditional assets like gold and equities rally first, it often signals the start of a risk-on environment.
The very conditions under which Bitcoin eventually thrives.
Capital usually rotates into Bitcoin once investors have extracted gains from safer assets.
This kind of divergence has been seen before in previous cycles, just before Bitcoin skyrockets into cycle peaks.
Bitcoin News: Zero Peak Indicators Hit
According to the analyst, none of the tell-tale signals of Bitcoin cycle peak have flashed the red signal. As per the chart he tweeted, every one of the top-cycle metrics, from the Ahr999 Index and Pi Cycle Top Indicator to the Puell Multiple and MVRV Z-Score, remains below their historical danger zones. Out of thirty total indicators, not a single one is giving signs that the crypto market has reached its peak.
In every past Bitcoin bull market, these metrics have lit up like warning lights before major tops to indicate extreme overvaluation, miner stress, and euphoric price acceleration.
Today, most readings are sitting at mid-range levels, suggesting that the market still has plenty of room to grow before entering overheated territory.
For example, the Ahr999 Index currently stands at 0.84 versus a historical top threshold of 4. This value is nowhere near signaling a sell zone. The MVRV Z-Score, which has historically nailed cycle peaks, stands at just 1.85, well under the 5 level that marks true market exuberance.