After Bitcoin ($BTC) surged above $108,000, a price correction followed. This correction made man traders speculate if $108,000 is the bull cycle’s top. However, most market participants believe this is not the end of the bull market. However, worries are growing that this could be a lengthy correction, similar to the one that lasted six months starting in March. Recently, CryptoQuant analyzed the current market phase using key on chain indicators.

Miner Behavior Points to Bitcoin Hoarding, Not Selling

The Adjusted SOPR (Spent Output Profit Ratio) is one such indicator. This does not include transactions from under an hour and uses a 7-day Simple Moving Average (SMA) for clarity purposes. The SOPR (7-SMA) is above 1 and declining. This means that the market participants are not making any profits at this moment. The SOPR historically drops below 1 and Bitcoin starts to rebound. Because the market often reverses when people sell at a loss. In bull markets this is a common pattern.

The Miner Position Index (MPI) is an index of miner behavior on Bitcoin sales analyzed with a 7-day SMA. Miners historically sell before halving events, or during the last stages of peaks in the cycle. The MPI is down at the moment, and there are no major transfers of Bitcoin to exchanges. This indicates large mining firms are hoarding their Bitcoin as a part of their assets. But sell offs are still anticipated at periodic intervals for operational costs.

$BTC Market Shows Cooling-Off Period, Not Cycle Peak

Another key indicator is the total network fees which is also going down based on the 7 day SMA. This is a sign of a decrease in onchain activity, which means that the market is cooling.

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On the other hand, funding rates have also fallen. Bitcoin has repeatedly bounced back from large funding rate drops in this cycle, particularly in the negative funding ranges. However, if funding rates continue to drop and sentiment goes bearish, there could be a rebound.

Overall, on chain data suggests the bull market remains in control. CryptoQuant thinks the current stage of the cycle is a cooling off period, not the peak. Although, price movements on a short- term basis still remains unpredictable, it is advisable to adopt a disciplined approach while investing in the market.