Bitcoin (BTC) has slightly declined in the past 24 hours, with a drop of 1.08%, but it remains above 100 thousand. Although market sentiment is bullish, the correction phase is part of the market cycle. Analysis from AMBCrypto suggests that a correction phase may be approaching, identifying key areas that could support a price rebound. According to CryptoQuant's Bitcoin Cycle Indicator Index (IBCI), BTC has entered the distribution zone, indicating that a correction phase may occur before BTC resumes its upward trend. Further analysis by AMBCrypto indicates that if a correction occurs, BTC may find support between 94.80 thousand and 97 thousand. The U.S. government may increase its BTC holdings, which could drive demand and positively impact BTC's price movement.

ARKM

Bitcoin [BTC], in the past 24 hours, has seen a slight drop, falling by just 1.08%. However, it still trades above the $100,000 region. Despite the bullish market sentiment, corrective phases are inevitable and form part of the broader market cycle.AMBCrypto’s analysis found that a corrective phase could be approaching and has identified key regions that could support a bounce-back in price.Distribution phase threatens BTCThe Index of Bitcoin Cycle Indicators (IBCI) on CryptoQuant showed that the asset has entered a distribution zone, a level last reached eight months ago, in May 2024.IBCI is a combination of several market indicators—seven in total—including Puell Multiple, MVRV, NUPL, and SOPR.A distribution is indicated when the IBCI crosses into the red region on the chart, starting at 75%, meaning there’s still growth potential for BTC; however, selling activities have begun.Once IBCI hits the 100% zone—which occurs when all seven indicators enter their distribution phase—BTC would hit a market top, with its price forming lower highs and lows.IBCI above 50%, where BTC currently lies, suggests a corrective phase is expected before BTC resumes its upward trajectory.Further analysis from AMBCrypto identified a potential bounce-back level should a correction occur before the market top is reached.A drop to mid-$90k before rallyUsing the In/Out of Money Around Price, an on-chain metric to determine potential support and resistance zones on the chart, AMBCrypto determined where a potential BTC pullback would be met by demand for a continued move upward.This demand zone lies between $94,800 and $97,000, with a mid-range of $96,500. Approximately 1.36 million BTC buy orders from 1.4 million addresses support this range.A corrective phase into this region would be followed by a price surge back into the $100,000 region, with the possibility of BTC setting a new high from there.Other market activities observed could also play in BTC’s favor for a move up, one being the creation of a stockpile including BTC.U.S. stockpile could boost BTCThe creation of a U.S. digital assets stockpile, as announced in the recent executive order on January 23 by President Donald Trump, could favor BTC.Read Bitcoin’s [BTC] Price Prediction 2025–2026A digital stockpile including BTC implies the U.S. government may hold the cryptocurrency as part of its reserves.According to Arkham, the U.S. government already holds approximately 198,000 BTC, valued at $20.71 billion. If the government increases its holdings, it could drive demand and positively influence BTC’s price trajectory.

Bitcoin may face a correction phase, and the price could drop before rebounding.