Key Points
- Bitcoin’s price may face a correction soon, potentially dropping to $66K.
- Several metrics indicate a bearish trend, including the Network Value to Transactions (NVT) ratio and Binary CDD.
Bitcoin’s Possible Price Correction
Bitcoin’s price saw a significant increase, nearing $70K. However, a minor correction could precede another rally.
Certain metrics of Bitcoin were examined to predict a possible price correction. A tweet by Captain Faibik on March 9th suggested that Bitcoin could rise another 10% if it crosses the $69 mark.
Examining Bitcoin’s Metrics
The price of Bitcoin was verified via CoinMarketCap, showing a nearly 2% increase in the last 24 hours. At the time of reporting, Bitcoin was trading at $69,515.98 with a market capitalization exceeding $1.37 trillion.
Analysis showed potential for a short-term price correction for Bitcoin. Notably, Bitcoin’s Network Value to Transactions (NVT) ratio showed a sharp increase in recent days. This ratio, calculated by dividing the market cap by the transferred on-chain volume in USD, indicates a possible correction when it rises.
Other metrics also suggested a bearish trend for the cryptocurrency. Data from CryptoQuant indicated that Bitcoin’s aSORP was in the red, meaning more investors are selling at a profit. During a bull market, this could indicate a market top.
Bitcoin’s Binary CDD also showed bearish signals, as movements by long-term holders in the past week were higher than average. Increased selling by long-term holders could significantly impact Bitcoin.
If a price correction occurs, Bitcoin could find robust short-term support near the $66k-$65k mark. The MACD showed a battle between bulls and bears. The 4-hour chart of the cryptocurrency also suggested that its Relative Strength Index (RSI) was nearing the overbought zone. If this occurs, selling pressure might increase, and Bitcoin’s value could reach its support.
