Key Points
- Bitcoin’s price increased by over 4% in the last 24 hours, but some metrics suggest it may be overbought.
- Despite some indicators suggesting a potential price correction, others hint at further price increases.
Bitcoin, the market’s leading cryptocurrency, led a significant price rally last week. This was not the only interesting development, as data suggests another price increase may be on the horizon.
However, it is hard to predict with certainty, as another indicator suggests a potential downturn.
Bitcoin’s Market Situation
The price of Bitcoin rose by over 14% in the past week, with a 4% increase in the last 24 hours alone. The current trading value of Bitcoin is $66,616.52, with a market capitalization exceeding $1.3 trillion.
Crypto analyst Ali recently highlighted a bullish development, with Bitcoin breaking above a resistance level. This suggests that Bitcoin’s price may continue to rise in the coming days.
However, not all indicators are pointing towards continued growth. The TD sequential indicator showed a sell signal on Bitcoin’s daily chart, suggesting the rally may soon end. However, if Bitcoin can sustain the uptrend and rise above $67.5k, this sell signal would be invalidated.
Where is Bitcoin Headed?
Given the conflicting data, a closer look at Bitcoin’s metrics is needed. According to Glassnode, Bitcoin’s NVT ratio dropped, suggesting the asset is undervalued and could experience a price increase.
CryptoQuant’s data also revealed bullish metrics, including low net deposit on exchanges compared to the last seven days. This indicates high buying pressure. Long-term holders’ movements were also lower than average, suggesting they intend to hold onto their coins.
However, other metrics are concerning. Both Bitcoin’s Relative Strength Index (RSI) and Stochastic were in overbought zones, suggesting selling pressure may increase and end the rally.
At the moment, Bitcoin’s fear and greed index is at 69%, indicating that the market is in a “greed” phase and a price correction may be imminent.
Analysis of Bitcoin’s daily chart showed that both its Money Flow Index (MFI) and Chaikin Money Flow (CMF) registered downticks, suggesting a price correction could be coming. However, the MACD supported the buyers, indicating a bullish trend.
