Overheating Is Over? Bitcoin Mirrors 2024 Cycle, Says On-Chain Analyst

- Crypto Dan, current cryptocurrency market overheating levels resemble the 2024 correction phase - Analyzed based on the proportion of Bitcoin holdings held for less than 1 week to 1 month [Unblock Media] On-chain analyst Crypto Dan recently tweeted that "the current overheating level of the cryptocurrency market is similar to the correction phase in 2024." He analyzed that there is a high probability of a positive shift in 2025 along with macroeconomic variables. Dan pointed to the proportion of Bitcoin holdings held for less than 1 week to 1 month as a key indicator of overheating. This ratio usually increases during an upward trend in the market, followed by a tendency to decrease during a decline or correction. He explained, "In this cycle, these movements have appeared twice in small instances, and the degree of overheating is similar to each other." In particular, he interpreted that the current ratio has reached a level similar to the bottom range of the 2024 correction phase (yellow box range), suggesting a similar correction cycle is being reproduced. As a result, the current overheating is considered to be largely alleviated, indicating the possibility of entering a sideways or recovery transition phase rather than further decline. Dan projected, "It may take more time, but if macroeconomic progress is made together, a positive trend is likely to occur in 2025."