- Following Bitcoin’s surge above $69,000 on Tuesday, it faced significant selling pressure, dropping by 7% to $63,500, shortly after reaching the peak.
- A warning based on Santiment data by renowned crypto analyst Ali Martinez highlights Bitcoin’s MVRV (Market Value to Realized Value) indicator.
- According to CryptoQuant’s findings, on-chain data revealed that around $69 million worth of 1,000 Bitcoins were moved from addresses associated with miners to Coinbase.
Bitcoin price faces selling pressure after recording a new high; Will BTC price see a correction soon?
Bitcoin Price Faces Selling Pressure on Tuesday
After surpassing $69,000 on Tuesday, Bitcoin’s price faced a substantial selling pressure, dropping by 7% to $63,500 from the peak. As a result, the overall cryptocurrency market experienced a loss of over $150 billion in the last 24 hours.
A warning based on Santiment data by renowned crypto analyst Ali Martinez highlights Bitcoin’s MVRV (Market Value to Realized Value) indicator, which is currently at 19.57%. Martinez emphasizes a concerning historical pattern that whenever this indicator has crossed above 18% since February 2021, Bitcoin’s price has fallen by 24% to 55%.
Given this trend, traders are advised to closely monitor the MVRV indicator as it signals an imminent significant correction in Bitcoin’s price. The analyst’s warning underscores the importance of attention and risk management strategies in the volatile cryptocurrency market.
According to CryptoQuant’s findings, on-chain data revealed that around $69 million worth of 1,000 Bitcoins were moved from addresses associated with miners to Coinbase. This movement of Bitcoins occurred just before Bitcoin reached new highs of around $69,000 and dropped to $62,000 on Tuesday.
Bitcoin critic Peter Schiff mocked investors, stating, “Today Bitcoin hit a new record above $69,200. However, it was observed that the price dropped to $59,300 in about four hours. In other words, Bitcoin faced another stunning drop of about 14.5% in one day. It is impossible to define something so volatile as a safe haven or store of value!”
Calls for Buying Bitcoin Opportunities Increase
On-chain data provider Santiment reported that the celebration of Bitcoin’s all-time high was overshadowed by a 7% price drop, and calls for buying opportunities reached the highest level in months. Historically, when the initial urgency decreases, it is believed that the real opportunity begins, and the chance to buy emerges.
According to Santiment, the total open interest for Bitcoin on exchanges has notably decreased, occurring after today’s all-time high. This decrease in open interest for Bitcoin on exchanges indicates a reduction in overly speculative trading activity. The decline in open positions can be interpreted as the removal of a temporary speculative phase from the market.
When funding rates stabilize, prices may experience fluctuations that reflect the true dynamics of supply and demand, less affected by futures and options positions, and more reflective of the real dynamics of traders, investors, and hodlers.
