Bitcoin’s recent 10% decline is seen by analysts as a normal occurrence within a bull market. This drop aligns with historical patterns, where drawdowns of over 23% have been observed in previous cycles. The use of leverage and subsequent liquidations tend to increase as investor confidence grows. In the past three months, the largest long liquidation coincided with the 10% retraction in Bitcoin’s value.

Looking back at bull market cycles from 2011 to 2013, 2015 to 2017, and 2018 to 2021 (excluding the Covid period), drawdowns consistently exceeded 23% and even reached a peak of 35%. In 2023 alone, a significant drawdown of around 20% occurred in September. Therefore, based on these historical patterns, the current 10% dip is considered a common occurrence in an active bull market rather than a deviation.