Key Points
- Bitcoin’s price has seen a more than 10% increase in the last week, sparking investor excitement.
- On-chain metrics indicate a bullish trend for Bitcoin, but also potential red flags suggesting a possible price correction.
Bitcoin, the leading cryptocurrency, has seen a substantial price increase of over 10% in the past week. This sudden price rally has sparked a buzz in the market, with investors eagerly anticipating Bitcoin reclaiming the $70k mark.
Bitcoin’s Bullish Trend
According to data from CoinMarketCap, Bitcoin’s price rally has positioned it above $67k. At the time of writing, Bitcoin was trading at $67,115.81, boasting a market capitalization of over $1.32 trillion.
A popular crypto analyst, Titan of Crypto, recently tweeted about Bitcoin targeting the upper line of its realized price. If this prediction proves accurate, Bitcoin could potentially surge above $100k in the coming weeks.
On-Chain Metrics and Potential Red Flags
On-chain metrics for Bitcoin look positive, with data from CryptoQuant indicating a drop in Bitcoin’s net deposit on exchanges, suggesting low selling pressure. However, there are also potential red flags. For instance, Bitcoin’s accumulation trend score, an indicator of the relative size of entities actively accumulating coins on-chain, had a value of 0.0107. A value closer to 0 implies investors are not accumulating Bitcoin.
Additionally, Bitcoin’s fear and greed index stood at 72, indicating the market is in a “greed” phase, which often precedes price corrections. Thus, despite the bullish trend, investors should be cautious of a potential price correction.
In the short term, Bitcoin was testing its resistance at the $67.3k mark. Its price remained above its 20-day Exponential Moving Average (EMA), and its Relative Strength Index (RSI) registered an uptick, suggesting Bitcoin might flip its resistance into support. However, the Chaikin Money Flow (CMF) hinted at a potential price correction in the near future.
