Is the 12% pullback of Bitcoin entering a Depth correction? CryptoQuant analysts: This is just a "normal phenomenon" in the bull run.

Bitcoin has seen a significant fall since reaching its historical high, with market sentiment turning conservative. However, based on historical data, this pullback remains within an acceptable range. CryptoQuant analyst Darkfost emphasized that this is a common correction pattern in a bull run, rather than a reversal signal.

Bitcoin has fallen 12% from its peak, is it worth panicking?

According to CryptoQuant analyst Darkfost's observation on September 2, after Bitcoin reached an all-time high of about $123,000, the price has pulled back by about 12%. This wave of fall has raised concerns among some investors in the market about a "deep correction."

However, from a technical perspective, this level of pullback is not uncommon in a bull run and may even be a healthy signal for the continuation of the bulls.

Historical backtesting: The maximum fall during this bull run reached -28%.

Since breaking through the historical high point for the first time in March 2024, Bitcoin has experienced a maximum fall of -28% in this bull run. This also means that the current -12% pullback is still far below the most severe correction of this bull run.

From the charts provided by CryptoQuant, it is clear that the vast majority of price corrections fall within the range of -20% to -25%, and this red dashed line (-20%) has become the "psychological dividing line" for market corrections and reversals.

Although the current price has fallen, it has not yet approached the average depth of past pullbacks, nor are there any signs of a technical breakdown.

The meaning behind the pullback: cleansing leverage and resetting emotions

Darkfost pointed out that such pullbacks should not be overly feared; instead, they may create conditions for the continuation of a bull run. He stated: "Such corrections can help the market eliminate excessive leverage, cool down overheating emotions, and provide long-term investors with more attractive entry prices." Especially in the cryptocurrency derivatives market, excessive leverage often amplifies volatility. A natural correction to "wash out leverage" actually helps reduce potential risks.

Structural support remains, long-term trend has not been broken.

From the chart, even though Bitcoin has experienced several significant pullbacks over the past year, each time it ultimately regained its upward trend. Especially after the price reached $120,000 in mid-2025, although it has slid somewhat, it is currently still stabilizing above the $100,000 range. Overall, the technical structure of this bull run has not been broken, and there are no extreme panic indicators in the market.

This article discusses whether Bitcoin has entered a deep correction after a 12% pullback. CryptoQuant analysts say this is just a "normal phenomenon" in a bull run, first appearing in Chain News ABMedia.