"$65,000 is a strong support line"... Bitcoin's Decline Depth Has Shallowed, Securing Institutional-Level Stability

▲ Bitcoin (BTC)     ©Godasol

An analysis suggests that Bitcoin (BTC) has matured into a mainstream asset, leaving behind its past extreme volatility, and has entered a 'Great Moderation' phase, aiming for stable upward trends instead of explosive surges and crashes.

According to the cryptocurrency specialized media Bitcoinist on May 10 (local time), the Bitcoin market cycle has entered a new era of volatility suppression. Virtual asset analyst Killa diagnosed that the parabolic surges and signs of frenzied highs that dominated the market in the past have disappeared, replaced by more restrained price movements. As the asset matures, explosive growth has moderated, while the pace of institutional expansion is becoming more robust.

This structural change is clearly evident even in bear markets. The analyst predicted that future market corrections would take a predictable and orderly form, rather than the catastrophic plunges or massive panic selling seen in the past. The Market Value to Realized Value (MVRV) indicator, which measures the degree of market overheating, has also remained within a stable range in this cycle, not encroaching on past extreme overheating zones, suggesting that the market has reached a new equilibrium.

Analysts emphasize that the current market environment does not support aggressive bearish arguments. In particular, the area around $65,000 is acting as a strong confidence zone for spot accumulation, and it is advised that now is the time to respond with patience rather than succumbing to fear. Bitcoin is currently in a long-term accumulation zone, often called the 'blue zone,' concentrating energy for significant expansion.

Historically, Bitcoin has tended to consolidate in a range, forming a sideways box at local lows for a significant period before major price increases. Similar time-based accumulation is currently underway, but a key difference is that the depth of the decline is much shallower compared to past cycles. This signifies strengthened downside rigidity in the market and indicates the need for a strategic approach that is not swayed by short-term price fluctuations.

Ultimately, the Bitcoin market has entered a mature phase where extreme optimism or pessimism is unnecessary. The current tedious sideways market is merely a process to filter out impatient investors, and it is the common view of experts that this is the last opportunity to accumulate holdings before a full-fledged bull market resumes. Investors should prepare for the upcoming uptrend through systematic phased accumulation rather than expecting hasty breakouts.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*