Bitcoin Price Might Experience a Correction! What Do Current On-Chain Data Indicate?
- Traders evaluating the market direction after a 30% rally in BTC price this month are predicting whether the rally will continue or weaken.
- Julio Monero pointed out two significant on-chain developments after the recent Bitcoin price rally, noting their alignment with a potential pause in Bitcoin’s price rally.
- Trader Skew mentioned that Bitcoin’s open interest (OI) is quite flat and “mostly unwatched or significantly unimpressive.”
Bitcoin price continues to hold above $34,000 despite selling pressures: What does on-chain offer about the Bitcoin price?
On-Chain Offers Insights into Bitcoin Price
Bitcoin’s price continues to hold strong above $34,000 despite macro, contract expiry, and end-of-month pressures. Traders trying to assess the market direction after a 30% rally in BTC price this month are predicting whether the rally will continue or weaken. BTC price mostly oscillates between $34,100 and $34,900 this week.
Julio Monero, head of CryptoQuant research, highlighted two significant on-chain developments that align with a potential pause in Bitcoin’s price rally. He shared that short-term holders sold with a 6% profit after the recent Bitcoin price rally, marking the highest profit margin since April. This indicates that short-term holders are realizing their profits as BTC’s price reached its monthly high of $35,150 this week.
Additionally, whales have made the highest daily expenditure since June. Larger whales are moving their BTC holdings. Whale Alert reported significant transfers to cryptocurrency exchanges Coinbase and Binance this week when BTC’s price suddenly exceeded $35,000.
BTC Price Entering Correction
Trader Skew mentioned that Bitcoin’s open interest (OI) is quite flat and “mostly unwatched or significantly unimpressive.” Bybit’s OI increased by approximately 8,000 BTC. Crypto Tony expects BTC’s price to reach around $36,000 resistance and then get rejected.
BTC price has increased by 15% this week and is currently trading at $34,070. The low and high values in the last 24 hours were $33,416 and $34,238, respectively. Additionally, the trading volume has decreased by 18% in the last 24 hours. The US Federal Reserve’s preferred core PCE measure dropped to 3.7%, but core PCE increased on a monthly basis due to high energy prices.
