- The price of BTC has risen marginally over the past 24 hours.
- The long-term activity of holders appeared bearish, indicating a price correction.
Bitcoin [BTC] manages to maintain its upward trend while the daily chart remains green. However, a key BTC measure reached levels that suggested the possibility of a price correction was high.
Should Investors Be Cautious When Making Decisions About BTC?
Bitcoin Investors Make Profits!
Over the past week, BTC investors enjoyed huge gains as the price of the king of cryptos rose by more than 20%. In fact, the value of the coin has risen over the past 24 hours, allowing BTC to push above the $62,000 mark.
The growth trajectory looked extremely promising and hinted that the day BTC could reach its previous ATH of $69k might not be far away.
At the time of writing, BTC was trade at $62,151.15 with a market cap of over $1.22 trillion. Things for BTC looked quite optimistic as the coin had a strong support level.
Ali, a popular crypto analyst, recently revealed in a tweet which holds BTC above a massive wall of support, with 1 million addresses purchasing over 671,000 BTC within the price range of $60,334 to $62,155. This suggested that BTC was unlikely to fall below $62,000.
What can you expect from BTC?
Since the above data looked bullish, AMBCrypto took a look at BTC’s stats to figure out what to expect.
Our analysis of CryptoQuant’s facts revealed that BTC’s foreign exchange reserve fell, meaning buying pressure was high. The same sentiment was also proven by other statistics.
For example, the Coinbase premium was high, indicating that buying sentiment was dominant among US investors.
Source: CryptoQuant
Not everything was picture perfect, however. At the time of writing: BTCs fear and greed index had a value of 80, indicating high greed in the market.
When the benchmark reaches that level, it indicates that the possibility of a price correction is high.
Apart from that, a few other metrics seemed bearish on Bitcoin. For example, BTC’s aSORP turned red, indicating that more investors were selling at a profit. In the middle of a bull market, this could indicate a market top.
Is your portfolio green? Check the Bitcoin profit calculator
Moreover, the Binary CDD also followed a similar trend. This meant that the movement of long-term holders over the past seven days was higher than the average.
If they are moved for the purpose of sale, this could have a negative effect. Considering these statistics, the possibility of BTC witnessing a price drop cannot be ruled out.
Source: CryptoQuant