Bitcoin has undergone its second-largest correction of this bull run, according to analysts at crypto exchange Bitfinex. The correction, from the coin’s all-time high of $109,590 set on Jan. 20 to a low of $77,041 during the week of March 9-15, represents a 30% retracement triggered by selling pressure from short-term holders.

In its report, Bitfinex defines short-term holders as those who have bought within the last seven to 30 days. According to the exchange, they have suffered net unrealized losses and are often more subject to capitulation.

Bitfinex notes that ongoing outflows from Bitcoin ETFs, which totaled around $920 million during the week of March 9-15, suggest that institutional buyers have not yet returned with enough strength to combat selling pressure.

Cryptocurrencies, United States, ETF

Bitcoin capital flow by short-term holders. Source: Glassnode/Bitfinex

Trading at around $84,357, Bitcoin has rebounded 9.5% from its low. According to Bitfinex, a key factor moving forward will be whether institutional demand picks up at these lower levels, potentially leading to supply absorption and price stabilization.

“While institutional flows and the macro situation is pivotal for market direction in the mid-term, statistically, a 30 percent drawdown has often marked the low before continuation higher,” Bitfinex analysts told Cointelegraph. “If Bitcoin stabilizes around this level, history suggests a strong recovery could follow.”