Key Points
- Bitcoin’s price has surged over 5% in the last 24 hours, but indicators suggest a sell signal.
- Metrics indicate high selling pressure and potential price correction due to high “greed” in the market.
Bitcoin (BTC) has been on a winning streak, with its price steadily rising towards a new all-time high. However, indicators suggest that this upward trend may not last, implying that investors might have a longer wait to see BTC reach a new peak.
Bitcoin’s Market Performance
As per CoinMarketCap, Bitcoin was comfortably exceeding the $66k mark, with its value having risen more than 5% in the past day. At the time of writing, Bitcoin was trading at $66,769.99, boasting a market capitalization surpassing $1.3 trillion.
However, a notable crypto analyst, Ali, has indicated a sell signal for Bitcoin. According to his tweet, the TD Sequential indicator displayed a sell signal for Bitcoin on the 4-hour chart. Since February 15, every time this indicator suggested a sale, Bitcoin’s price decreased by 1.5% to 4.7%.
Indicators of Market Sentiment
Additionally, Bitcoin’s fear and greed index recorded a score of 90, indicating a high level of “greed” in the market. This metric often suggests that a price correction is likely when it reaches such a level.
Data from CryptoQuant indicates that Bitcoin’s net deposits on exchanges are above the 7-day average, suggesting increased selling pressure. The binary CDD of Bitcoin was also in the red, implying that movements from long-term holders in the past week were above average. If these movements were for selling purposes, it could negatively impact the market.
Furthermore, Bitcoin’s aSORP also turned red, suggesting that more investors were selling at a profit. In the midst of a bull market, this could indicate a market peak.
Bitcoin’s Relative Strength Index (RSI) was also in the overbought zone, which could increase selling pressure on the coin. The Chaikin Money Flow (CMF) also showed a downtick, suggesting a higher likelihood of a price correction. However, the MACD remained favorable for buyers, indicating a bullish advantage in the market.
