- Bitcoin was in the overvalued zone at the time of writing.
- If a price correction occurs, BTC could drop to $66,000.
Bitcoins [BTC] the price registered a sharp increase, pushing it towards $70,000 at the time of writing. However, there is a possibility of a slight correction before the start of a new rally.
Therefore, AMBCrypto checked BTC’s statistics to see if the price will undergo a correction soon.
Bitcoin is heading towards $70,000
According to a tweet by Captain Faibik on March 9, BTC could rise another 10% if it manages to cross the $69 mark.
To confirm this information, AMBCrypto checked the price of Bitcoin via CoinMarketCap. We found that BTC is up almost 2% in the past 24 hours.
At the time of writing, BTC was trading at $69,515.98 with a market cap of over $1.37 trillion.
However, AMBCrypto’s analysis also showed that there were chances that BTC would witness a price correction in the near term.
Things are looking bearish for Bitcoin
In particular, BTC’s Network Value to Transactions (NVT) ratio recorded a sharp increase in recent days.
For the uninitiated, the NVT ratio is calculated by dividing the market capitalization by the on-chain volume transferred, measured in USD.
Whenever it rises, it suggests that the cryptocurrency in question is priced higher, signaling a possible correction.
Source: Glassnode
A few other metrics also looked bearish on the coin. Our look at CryptoQuant’s data pointed out that BTC’s aSORP was in the red at the time of writing, meaning more investors are selling at a profit.
But in the middle of a bull market, this could indicate a market top.
The Binary CDD also showed bearish signals as long-term holders’ moves were higher than average over the past seven days. So if more long-term holders sell, it could hurt BTC exponentially.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2024-25
If a price correction takes place, BTC may witness strong short-term support around $66,000-$65,000. Interestingly, the MACD showed that the bulls and bears were in a battle at the time of writing.
The coin’s 4-hour chart also indicated that the Relative Strength Index (RSI) was about to enter the overbought zone. If that happens, selling pressure could increase and BTC’s value could hit its support.
Source: TradingView