Key Points
- Bitcoin is nearing $70k, with investors accumulating substantial amounts of BTC.
- Despite the bullish trend, several indicators suggest a possible price correction.
Bitcoin’s price is showing bullish momentum, inching closer to the $70k mark. Investors are accumulating Bitcoin, as indicated by recent data. However, the question remains whether Bitcoin’s price will continue to increase or if a price correction is imminent.
Accumulation of Bitcoin
Data from CoinMarketCap indicates a 3% increase in Bitcoin’s price last week, with a similar surge observed in the past 24 hours. At the time of writing, Bitcoin was trading at $69,535.15, boasting a market capitalization of over $1.37 trillion.
Crypto analyst Ali tweeted about an interesting development, stating that Bitcoin’s accumulation trend score hit 1. This score indicates the relative size of entities actively accumulating coins on-chain in terms of their Bitcoin holdings. A score closer to 1 suggests high buying pressure.
Bitcoin’s Future Growth
With a dominant buying sentiment in the market, there’s speculation about whether Bitcoin’s bull rally will continue. According to CryptoQuant’s data, Bitcoin’s binary CDD was green, suggesting that long-term holders’ movement in the last 7 days was lower than average, indicating a motive to hold their coins.
However, the aSORP turned red, suggesting more investors were selling at a profit. In a bull market, this could indicate a market top. Furthermore, a substantial amount of Bitcoin could get liquidated if Bitcoin touches $70k. Increased liquidation often signals a price correction possibility.
Therefore, Bitcoin might witness a price correction near $70k, potentially causing a drop to $66k. Technical indicators like the MACD and the Relative Strength Index (RSI) also suggest a possible price correction. The MACD indicates chances of a bearish crossover, while the RSI is nearing the overbought zone, which could increase selling pressure and potentially end Bitcoin’s bull rally.
