- The drop of Bitcoin to $106,000 was in line with its mean trend line that kept the uptrend and marked a structural market reset to grow.
- On-chain information illustrates decreasing reserves of exchange to show that the coins are accumulating in the correction period since investors are not giving their coins to others.
- Supportive macro policies, including rate cuts and easing tariffs, are boosting liquidity conditions that historically precede Bitcoin’s strong rally phases.
Bitcoin’s recent correction is being viewed not as a crash but as a healthy “reset” phase. As November begins, analysts at Bull Theory suggest that Bitcoin is positioning for a renewed expansion cycle following a structural recalibration that has kept its long-term uptrend intact.
Mean Trendline Holds as Market Resets for Growth
Bull Theory explained that Bitcoin’s decline to $106,000 touched the same mean trendline that has supported every major rally this year. The move follows the 10/10 flush earlier in October, both aligning precisely along the regression curve that defines Bitcoin’s cyclical trend. The slope of the regression is positive despite the price fluctuations.
The 100-day and the 200-day moving averages remain intact and this shows that market structure remains bullish. Both of those moving averages have been robust dynamic supports since 2024 and 2025, implying that the fundamental momentum of Bitcoin has not changed its direction.
According to Bull Theory, this recent correction is part of Bitcoin’s natural market rhythm—removing excess leverage while maintaining the foundation for sustained growth. The analysis views the pullback as a necessary reset rather than the start of a prolonged downturn.
Fractal Echo Pattern Suggests Pre-Expansion Behavior
The BTC Fractal Echo model referenced by Bull Theory indicates a repeating behavior before every major upside phase. Each time Bitcoin has cooled near its mean trendline, the pattern has preceded an acceleration period. This flattening behavior has historically acted as a precursor to sharp upward movements.
On-chain metrics support this pattern. Despite the price dip, exchange inflows have not increased, which would typically signal investor selling. Instead, exchange reserves continue to decline, showing that holders are keeping their coins off exchanges.
Bull Theory’s data implies that this is an accumulation phase. The market is absorbing liquidity and preparing for the next expansion leg as confidence remains high among long-term participants.
Supportive Macro Policies Reinforce the Uptrend Setup
Macro developments have begun to favor risk assets, including Bitcoin. The Federal Reserve’s recent 25-basis-point rate cut and the scheduled end of quantitative tightening on December 1 are injecting renewed liquidity into global markets. Additionally, tariff reductions between the U.S. and China are easing financial conditions further.
Historically, these types of policy shifts—rising liquidity combined with prior market flushes—have aligned with the beginning of major Bitcoin rallies. This combination clears speculative leverage while creating room for new capital inflows.
Bull Theory suggests that October’s volatility phase was the final reset before expansion. With supportive monetary policies, a stabilized structure, and signs of accumulation across the market, Bitcoin’s “reset” could be the foundation for the next leg of its growth cycle as November gains momentum.
