Bitcoin (BTC) Shows “Overheating Signal,” Major Correction Possible – TradingView News

Bitcoins BTCUSD The price saw a huge rally this week as it broke all-time highs (ATH) on two separate occasions. While the recent high of $70,083.05 represents a monumental milestone, it underscores that Bitcoin is showing an “overheating signal,” according to insights from crypto analytics platform CryptoQuant.

Given the palpable enthusiasm among investors to bet on the coin at the moment, CryptoQuant warns that the top coin may be facing a major correction. The analytics platform has laid out some factors that suggest that the coin could indeed be in the process of a correction. It highlighted that “the bull-bear market cycle indicator shows an overheated bull phase as prices rose above $65,000.”

#Bitcoin overheating signals and correction risks that should not be overlooked 🧵

Despite the bullish momentum, several indicators point to possible overheating. Let’s dive into them ⬇️ — CryptoQuant.com (@cryptoquant_com) March 8, 2024

With the price now changing hands at $68,472.28 and up 1.7% in 24 hours, the overheated sentiment is further reinforced. Bitcoin miners are also considered overpaid as profitability has risen to its highest level since December 2023.

Additionally, CryptoQuant highlighted that traders’ unrealized profit margins have increased to 57%. The analytics platform noted that such a high range is historically associated with a correction as traders need to take profits at some point.

How much can Bitcoin fall?

With the alarm bell ringing, the question remains as to how much the Bitcoin price can fall with the impending correction. While CryptoQuant did not provide such insights in this current analysis, its founder and CEO Ki Young Ju previously revealed that Bitcoin is unlikely to return to its spot BTC ETF listing price of around $46,376.

He argued that gold has never traded below its ETF listing price of $444 and that if precedent were followed, Bitcoin might not fall below the listing price either. Although the price of Bitcoin has corrected from the all-time high, it is actively in price discovery mode, with the likely uptrend unpredictable.

As a major bullish guide, market experts like Samson Mow are predicting a maximum price of $1 million for the coin in the long term.

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