New analysis suggests that Bitcoin sellers have been unable to trigger a traditional bull market correction in the current cycle. Checkmate, a prominent on-chain analyst at Glassnode, shared insights on X (formerly Twitter) on April 5, indicating that BTC price pullbacks have barely exceeded 20%.

Despite Bitcoin's retreat from recent all-time highs near $74,000, the corrections have been relatively minor in percentage terms compared to historical bull markets. Checkmate's data from his charting suite, Checkonchain, illustrates that while profit-taking and reactionary selling occurred at highs, the market has experienced maximum drawdowns of only 20%, with most around 15.8%.

This contrasts sharply with the previous bull market cycle, which saw pullbacks exceeding 50%, including the COVID-19 outlier in March 2020 at 61.4%. The lack of significant pullbacks in the current cycle is remarkable, especially considering the massive inflows from United States spot Bitcoin exchange-traded funds (ETFs) launched in January, which have purchased over 500,000 BTC.

This buy-side support, coupled with factors like multi-year lows in BTC balances on exchanges, fuels optimism for a return to price discovery. However, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, urges caution, highlighting that while ETF inflows have been significant, they fluctuate, and Bitcoin's price might have been lower without ETFs. Balchunas notes that net withdrawals from ETF products are normal investor behavior.