- Bitcoin’s price increased by over 5% in the last seven days.
- Most metrics and indicators suggest a price correction.
- A key indicator flashes a sell signal on Bitcoin’s chart, hinting at a price correction soon.
Bitcoin’s recent surge hints at a looming price correction, according to key market indicators.
Bitcoin’s Recent Performance and Market Sentiment
Bitcoin [BTC] investors were sitting tightly as the king of cryptos was inching towards $70k once again. However, it might take a bit longer for BTC to reclaim that mark as a key metric hinted at a price decline in the coming days. CoinMarketCap’s data revealed that Bitcoin’s price increased by more than 5% in the last seven days. At the time of writing, the coin was trading at $69,420.39 with a market capitalization of over $1.37 trillion. The upward trajectory gave investors hope that BTC would once again touch $70k.
Indicators Suggesting a Potential Price Correction
Ali, a popular crypto analyst, recently posted a tweet that suggested otherwise. He mentioned the TD sequential indicator as it flagged a sell signal, hinting at a price drop. Each time the indicator flagged buy/sell signals since February, BTC’s price has witnessed significant movements. Therefore, AMBCrypto planned to take a closer look at BTC’s state to see whether a price correction was inevitable. As per our analysis of CryptoQuant’s data, selling pressure on BTC was increasing as its Exchange Reserve rose. Its Exchange Netflow Total was high compared to the last seven-day average, further hinting at a sell-off.
Apart from this, BTC’s aSORP was red, meaning that more investors are selling at a profit. In the middle of a bull market, it can indicate a market top. Its ULP revealed that investors were in a belief phase, where they have unrealized profits. Another bearish metric was the Fear and Greed Index, as it revealed that the market was in an “extreme greed” position. Whenever the metric hits that level, the chances of a price correction increase.
Technical Analysis of Bitcoin’s Chart
AMBCrypto then analyzed Bitcoin’s daily chart to see what technical indicators suggested. As per our analysis, BTC’s Money Flow Index (MFI) registered a sharp downtick. Its Relative Strength Index (RSI) also moved sideways in the last few days. On top of that, the Chaikin Money Flow (CMF) moved southward, indicating that BTC might witness a correction before its price touched $70k again. Nonetheless, the MACD remained in buyers’ favor as it displayed a bullish upper hand in the market.
Potential Support Levels and Future Outlook
We then took a look at Hyblock Capital’s data to determine where BTC’s price might plummet if a price correction actually happens. We found that BTC has support near the $68.8k mark, as liquidation would rise sharply at that level. If BTC fails to test that support, then its price might as well drop to $64.4k again.
Conclusion
In conclusion, while Bitcoin has shown significant upward momentum, several key indicators suggest a potential price correction. Investors should closely monitor these metrics and be prepared for possible market fluctuations. The coming days will be crucial in determining whether Bitcoin can maintain its upward trajectory or if a correction is indeed on the horizon.
