Key Points
- Bitcoin’s value surpassed $70k, with a rise of over 4% in the last 24 hours.
- Long-term investors have taken profits during the recent price surge, which may lead to a price correction.
Bitcoin, the leading cryptocurrency, has seen a significant rise in its value, surpassing the $70k mark after previously falling under $66k. This recent surge has resulted in a 4% increase in value over the past 24 hours.
Long-Term Investors Taking Profits
Simultaneously, long-term Bitcoin investors have been taking profits during this latest price surge. The Long-Term Holder Spent Output Profit Ratio (SOPR), a key metric used in analyzing market trends and investor behavior, has seen more spikes since the start of March. This suggests that as Bitcoin’s price reached new highs, investors have been taking profits.
The latest data shows that long-term holders have continued to be more active. The Binary CDD of Bitcoin was red, indicating that the movements of long-term holders in the last seven days were higher than average. If these movements were for the purpose of selling, it could potentially have a negative impact on the market.
Selling Sentiment and Potential Price Correction
Furthermore, the selling sentiment seems to have been dominating the market. Bitcoin’s net deposit on exchanges was high compared to the last seven-day average, which could potentially lead to a price correction in the near future.
Data suggests that a significant amount of Bitcoin could be liquidated when its value reaches the $71,750 mark. This could create a resistance for Bitcoin, possibly leading to a short-term price decline.
However, the daily chart of Bitcoin shows its price moving above its 20-day SMA, as displayed by the Bollinger Bands. The MACD technical indicator also suggests the possibility of a bullish crossover in the coming days. These indicators suggest that Bitcoin could be preparing for a further bull rally. Even so, Bitcoin’s growth momentum might decline as its Money Flow Index (MFI) has been moving sideways in the last few days.
