Key Points
- Bitcoin’s selling pressure is increasing, potentially leading to a price correction down to $95.8k.
- Several on-chain metrics suggest that Bitcoin is overvalued and could face a price correction soon.
Bitcoin’s selling pressure is on the rise, which could result in a price correction that pushes the cryptocurrency’s value down to $95.8k.
After surpassing the historic $100k mark, Bitcoin [BTC] experienced a pullback, dropping to around the $98k range. The leading cryptocurrency is slowly approaching the triple-digit mark once again.
Bitcoin’s Slow Climb to $100k
Over the last 24 hours, Bitcoin’s price has consolidated, moving only marginally. At the time of writing, Bitcoin was trading at $99.6k, with a market capitalization exceeding $1.97 trillion.
However, the slow climb to $100k may not be successful as one key metric is on the rise. Data analytics platform IntoTheBlock recently highlighted Bitcoin’s MVRV ratio, which is moving closer to historic peak levels. Typically, a rising MVRV is followed by price corrections.
Potential for Price Correction
The MVRV ratio isn’t the only metric suggesting a potential price correction. Bitcoin’s dominance has been decreasing recently, dropping from 53.7% to 51% last week, indicating a possible new altcoin season.
In addition, Glassnode’s data shows that Bitcoin’s NVT ratio has seen a sharp increase. When this metric rises, it often indicates that an asset is overvalued and could be facing a price correction.
CryptoQuant’s data also reveals some bearish metrics. Bitcoin’s net deposit on exchanges is higher than the average of the past seven days, signaling increased selling pressure. Furthermore, the aSORP has turned red, suggesting that more investors are selling at a profit.
Miners are also showing less confidence in Bitcoin, with a significant sell-off of 85,503 BTC over the past 48 hours. This has brought miner balances down to approximately 1.95 million BTC, the lowest level in months.
The technical indicator MACD shows a bearish advantage in the market. If a price correction occurs, Bitcoin could drop to its support near $95.8k. A further drop could push Bitcoin down to $91k.
On the other hand, the Money Flow Index (MFI) has seen an uptick, suggesting a potential continued price rise. This could push Bitcoin above $100k again in the coming days.
