BTC’s price moved up marginally in the last 24 hours.
Long-term holder activity seemed bearish, hinting at a price correction.
Bitcoin [BTC] manages to maintain its gaining spree as its daily chart remains green. However, a key BTC metric reached a level that suggested that the possibility of a price correction was high.
Should investors be cautious while making decisions on BTC?
Bitcoin investors are in profit!
Over the last week, BTC investors enjoyed huge profits as the king of cryptos’ price surged by more than 20%. In fact, in the last 24 hours, the coin’s value went up, allowing BTC to go above the $62k mark.
The growth trajectory looked immensely promising and hinted that the day BTC can touch its previous ATH of $69k was not far.
At the time of writing, BTC was trading at $62,151.15 with a market capitalization of over $1.22 trillion. Things for BTC looked pretty optimistic, as the coin had a strong support level.
Ali, a popular crypto analyst, recently revealed in a tweet that BTC holds above a massive support wall, with 1 million addresses buying over 671,000 BTC within the price range of $60,334 to $62,155. This suggested that BTC plummeting under $62k was unlikely to happen.
What to expect from BTC?
Since the aforementioned data looked bullish, AMBCrypto took a look at BTC’s metrics to find out what to expect.
Our analysis of CryptoQuant’s data revealed that BTC’s exchange reserve was dropping, meaning that buying pressure was high. The same sentiment was also proven by other metrics.
For example, its Coinbase premium was high, suggesting that buying sentiment was dominant among US investors.
Source: CryptoQuant
However, not everything was picture perfect. At press time, BTC’s fear and greed index had a reading of 80, indicating high greed in the market.
Whenever the metric reaches that level, it indicates that the possibility of a price correction is high.
Apart from that, a few other metrics looked bearish on Bitcoin. For instance, BTC’s aSORP turned red, suggesting that more investors were selling at a profit. In the middle of a bull market, it can indicate a market top.
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Moreover, its Binary CDD also followed a similar trend. This meant that long-term holders’ movement in the last 7 days was higher than the average.
If they were moved for the purpose of selling, it may have a negative impact. Considering these metrics, the possibility of BTC witnessing a price drop can’t be ruled out.
Source: CryptoQuant
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