According to the latest analysis from CryptoQuant, the ongoing crypto correction is likely to be short-lived, with the market entering what analysts describe as a “relatively small correction phase.”
The firm’s data indicates that Bitcoin’s realized cap age bands, a measure of on-chain capital movement, remain stable, suggesting the broader uptrend is still intact.
Analyst DanCoinInvestor noted that this consolidation could set the stage for a major altcoin rally as the cycle matures. Historically, similar cooling phases have preceded “intense overheating” at the tail end of market cycles, a period marked by sharp gains in altcoins while Bitcoin stabilizes near local highs.
The Correction Won’t Last Long
“The current crypto market appears to be in a relatively small correction phase, and a strong surge in altcoins is likely to occur alongside intense overheating at the end of the cycle.” – By @DanCoinInvestor pic.twitter.com/0Asr6rLcWd
— CryptoQuant.com (@cryptoquant_com) October 28, 2025
The chart shared by CryptoQuant highlights several previous instances of local and cycle tops, showing that current market dynamics resemble late-stage consolidation patterns rather than a full-scale reversal. Despite recent profit-taking, the report emphasizes that on-chain activity and realized cap behavior continue to mirror conditions observed ahead of major upside accelerations in past bull markets.
In essence, CryptoQuant’s outlook points to a resilient macro structure, where short-term volatility acts as a reset before renewed capital rotation into high-beta assets. If historical patterns hold, the next phase could see Bitcoin reclaim new highs, followed by a wave of altcoin exuberance signaling the cycle’s final expansion stage.