- Market participants posted non-trivial gains of $537 million after BTC’s price surge.
- BTC’s RSI was in an overbought position, which could spell trouble.
From Bitcoin [BTC] price gained upward momentum last week, allowing it to cross the $30,000 mark again. The uptrend gave investors hope for better days as the price of BTC had remained relatively dormant for weeks. While the price action looked bullish, if history is to be believed, it could also be the other way around.
Read From Bitcoin [BTC] Price prediction 2023-24
Bitcoin finally claims the $30,000 spot
After several weeks of waiting, BTC finally managed to put a smile on investors’ faces by registering a promising uptick. According to CoinMarketCapthe price of BTC is up more than 18% in the past seven days.
At the time of writing, it was trading at $30,150.42 with a market cap of over $587 billion.
a tweet of Glassnode pointed out that Bitcoin’s recent breakout above the $30,000 price level has led to an increase in profits sent to exchanges, with profitable inflows of $62.8 million. However, BTC gains have come to a halt, as evidenced by the marginal increase in price over the past 24 hours.
This can cause problems
Glassnode, in another tweet, indicated a remarkable development. According to the tweet, after the recent surge in Bitcoin price action, market participants closed in on a $537 million nontrivial gain, the second-largest profit-taking event of the past year.
As can be seen from the chart, the last time such an event occurred was followed by a drop in the price of BTC.
Take a look at BTCThe daily chart gave no reason to be bearish on the coin. For example, the Exponential Moving Average (EMA) ribbon showed a bullish crossover as the 20-day EMA reversed the 55-day EMA.
The MACD’s findings also complemented those of the EMA Ribbon as it revealed a clear bullish upside in the market. Additionally, BTC‘s Chaikin Money Flow (CMF) registered an uptick after a decline, which also looked bullish.
Source: TradingView
Is your wallet green? Check the Bitcoin Profit Calculator
Therefore caution is advised
While market indicators were bullish, Bitcoin’s on-chain metrics told a different story. From CryptoQuant, BTC’s Relative Strength Index (RSI) was in an overbought position. This could increase selling pressure, resulting in a price correction in the coming days.
BTC net deposits to exchanges were high compared to the past seven days, suggesting that selling pressure has already increased. On top of that, BTCThe fear and greed index had a score of 65 at press time, which was also a bearish signal.
