- Bitcoin has fallen by more than 6% in the past seven days.
- Market indicators were bearish on the coin.
Bitcoin [BTC] has been in a bull rally for the past seven days as the price has risen significantly. However, this bullish trend might not last long as a key indicator hinted at a possible price correction soon.
Let’s see what’s going on with Bitcoin.
Bitcoin liquidation is increasing
CoinMMarketCaps facts revealed that the price of Bitcoin has risen by more than 6% in the past seven days. At the time of writing, BTC was trading at $67,055.86 with a market cap of over $1.32 trillion.
In the meantime, Ali, a popular crypto analyst, posted tweet to highlight an interesting update. According to the tweet, $30.33 million will be liquidated if Bitcoin returns to $68,838.
Generally, an increase in liquidation results in price corrections. Therefore, AMBCrypto planned to take a closer look at the state of BTC to see if it is gearing up for a correction or if the road ahead is clear.
Which way is BTC heading?
AMBCrypto then planned to take a look at the king of crypto’s stats to see what to expect from it. According to our analysis of Santiment’s chart, BTC’s MVRV ratio registered an increase last week, which can be inferred as a bullish signal.
Moreover, weighted sentiment also moved into the positive zone. This clearly meant that bullish sentiment around the coin increased in the market.
However, the rest of the metrics looked bearish. For example, supply on the exchanges recorded an increase, indicating that selling pressure is increasing.
Moreover, the king of cryptos’ NVT ratio also registered an increase. When the measure rises, it means an asset is overvalued, indicating that the likelihood of a price correction is high.
Source: Santiment
Analysis of the daily chart of BTC
AMBCrypto then planned to look at the coin’s daily chart to see what market indicators suggest. We found that the price of BTC reached the upper limit of the Bollinger Bands, which often results in price corrections.
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Bitcoin’s Relative Strength Index (RSI) also registered a decline. Both indicators suggested that the chances of a price correction were high.
Nevertheless, the technical indicator MACD showed a bullish advantage in the market, indicating a continued price increase in the coming days.
Source: TradingView