- BTC has risen by more than 1.8% in the past 24 hours.
- One benchmark indicated that BTC may be overvalued.
After days of volatility and uncertainty, Bitcoin [BTC] recovered and went past the $70,000 mark. A major reason behind the price drop since April 2 was the huge profit realizations, which amounted to more than $2.7 billion.
However, BTC showed why it was king for a reason, quickly recovering and trading against $71,178.80 at the time of writing, after rising 2.39% in the past 24 hours, per CoinMarketCap.
Bitcoin is recovering
IT Tech, an author and analyst at CryptoQuant, recently posted analysis highlighting the factors that helped BTC recover quickly.
According to the analysis, a drop in selling pressure was a factor behind the price improvement, as short-term holders no longer realize losses due to the price correction.
Bitcoin has always had a strong correlation with Tether [USDT]. In the recent past, new USDTs have been minted, which could also have contributed to BTC’s recovery above $70,000.
Moreover, there was a huge inflow of BTC into the accumulation addresses, and their reserves reached an all-time high. All these incidents together give BTC a helping hand, allowing it to increase its price.
Will the trend continue?
As BTC managed to push its price above $71,000, AMBCrypto controlled CryptoQuant’s facts to see if there will be a price correction soon.
We found that buying pressure on BTC was high as the net deposits on the exchanges were low compared to the average of the last seven days.
The Coinbase Premium was also green, meaning buying sentiment was dominant among US investors.
Long-term holders’ moves have been lower than average over the past seven days, suggesting they were willing to hold on to their assets.
Source: CryptoQuant
While the aforementioned metrics looked bullish, AMBCrypto’s look at Glassnode’s data revealed a bearish signal. Bitcoin’s Network Value to Transactions Ratio registered a sharp increase.
An increase in the measure means an asset is overvalued, indicating a decline in price.
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2024-25
The king coin’s Money Flow Index (MFI) also supported the bears as it registered a sharp decline.
Nevertheless, the Relative Strength Index (RSI) looked bullish and indicated that the price of BTC could continue to rise in the coming days.
Source: TradingView