- Buying pressure on Bitcoin remained high.
- Market indicators pointed to a price correction in the coming days.
After a cruise, Bitcoin [BTC] has witnessed a correction in the last few hours. A latest report also pointed to a development that indicated a price correction.
AMBCrypto planned to check BTC’s on-chain data to find out if this correction will continue or if the trend will change again.
How is Bitcoin doing?
Bitcoin has lost its bullish momentum. According to CoinMarketCapthe price of the king coin has risen by more than 8% in the past seven days.
However, the trend changed over the past 24 hours as the coin’s price moved only marginally. At the time of writing, the coin was trading at $68,423.71 with a market cap of over $1.35 trillion.
In the meantime, Ali, a popular crypto analyst, recently posted tweet which shows an important development. According to the tweet, Bitcoin’s key indicator, the TD sequential marked a sell signal.
This indicated that investors might start selling the coin. Whenever selling pressure on an asset increases, it indicates a price drop.
However, according to our analysis of Glassnode’s data, investors started buying more BTC. This showed that BTC’s accumulation trend score increased from 0.5 to 0.7 last week.
To start, the Accumulation Trend Score is an indicator that reflects the relative size of entities actively accumulating coins on-chain in terms of their BTC holdings.
A number closer to 1 indicates an increase in buying pressure.
Source: Glassnode
Is BTC ready for a correction?
AMBCrypto dug deeper to find out what to expect from the king coin in the coming days. According to our analysis, Bitcoin’s NVT ratio has increased in recent days.
Whenever the measure rises, it indicates that an asset is overvalued, signaling a price drop in the coming days.
However, BTC’s foreign exchange reserves fell, easing selling pressure. The fact that investors were still buying BTC was further evidenced by the net deposit on exchanges.
To be precise, Bitcoin’s net deposits on the exchanges were low compared to the average of the past seven days. Both figures were bullish, as high buying pressure leads to price increases.
Source: CryptoQuant
Read Bitcoin (BTC) price prediction 2024-25
AMBCrypto then checked Bitcoin’s daily chart to find out what to expect from it. We found that BTC was rejected due to its resistance. It is striking that the Relative Strength Index (RSI) entered overbought territory.
If that happens, Bitcoin could witness a price correction, sending BTC back down to $66,000. In the event of a sustained bull run, BTC could reach $73,000.
Source: TradingView