- Selling pressure on Bitcoin increased.
- A price correction could push BTC back down to $95.8k.
After crossing a historic $100,000 mark, Bitcoin [BTC] witnessed a pullback and dropped near the $98k range. The king’s coin slowly approached the three-digit mark again.
However, BTC faces a number of obstacles in the future, which could cause a price correction.
Bitcoin is heading towards $100,000 again, but…
Bitcoin price consolidated over the past 24 hours as the price moved marginally. At the time of writing, the King was trading at $99.6k with a market cap of over $1.97 trillion.
However, this slow approach to $100,000 might not be a successful effort as a key metric was rising.
IntoTheBlock, a data analytics platform, recently posted tweet highlight BTC’s MVRV ratio. According to the tweet, Bitcoin’s MVRV moved closer to historic peak levels.
When the MVRV rises, price corrections are usually followed.
Historically, BTC witnessed similar pullbacks in 2018, 2021, 2022, and 2024. If history repeats itself, BTC investors should prepare for a speedy price correction.
Source:
Is a price correction inevitable?
Not only did the MVRV ratio give a red signal, a few other on-chain metrics also painted a similar picture. For example, BTC dominance has been declining lately.
The ratio fell from 53.7% to 51% last week – a sign of a new altcoin season.
Glassnode’s data showed that Bitcoin’s NVT ratio registered a sharp increase. Whenever the measure rises, it indicates that an asset is overvalued, signaling a price correction in the future.
Source: Glassnode
CryptoQuant’s facts also pointed out some bearish stats. Net deposits of BTC on the exchanges were high compared to the average of the past seven days. This is a clear sign of increasing selling pressure on the king coin.
Additionally, the aSORP turned red, meaning more investors are selling at a profit. In the middle of a bull market, this could indicate a market top.
Apart from that, AMBCrypto reported rather, miners showed less confidence in BTC when they sold their holdings.
To be precise, over the past 48 hours, BTC miners have sold a whopping 85,503 BTC, bringing miners’ balances down to around 1.95 million BTC – the lowest level in months.
Read Bitcoins [BTC] Price prediction 2024-25
The technical indicator MACD showed a bearish advantage in the market. In the event of a price correction, BTC could soon drop to $95.8k. A slip below could push BTC towards $91,000 again.
However, the Money Flow Index (MFI) recorded a rebound, indicating continued price appreciation. This could push BTC back above $100,000 in the coming days.
Source: TradingView