- The price of BTC has increased slightly in the last 24 hours.
- Long-term holder activity appeared bearish, indicating a price correction.
Bitcoin [BTC] manages to maintain its uptrend as its daily chart remains green. However, a key BTC metric reached a level that suggests the possibility of a price correction is high.
Should investors be careful when making decisions about BTC?
Bitcoin investors are in profit!
Over the last week, BTC investors enjoyed huge gains as the price of the king of cryptos rose by more than 20%. In fact, the coin's value has increased in the last 24 hours, allowing BTC to cross the $62,000 mark.
The growth path looked extremely promising and suggested that the day when BTC can reach its previous high of $69,000 is not far off.
At the time of writing, BTC trade at $62,151.15 with a market cap of over $1.22 trillion. Things were looking quite bullish for BTC as the coin had a strong support level.
Ali, a popular crypto analyst, recently revealed in a tweet that BTC is above a massive support wall, with 1 million addresses purchasing over 671,000 BTC in the price range of $60,334 to $62,155. This suggests that BTC is unlikely to crash below $62,000.
What can you expect from BTC?
Since the above data looked bullish, AMBCrypto took a look at BTC's metrics to find out what to expect.
Our analysis of CryptoQuant Data revealed that BTC's foreign exchange reserves were declining, which meant buying pressure was high. The same sentiment was also confirmed by other metrics.
For example, Coinbase's premium was high, indicating that buying sentiment prevailed among US investors.
Source: CryptoQuant
However, not everything was perfect. At press time: BTC Fear and Greed Index had a value of 80, indicating great greed in the market.
Whenever the metric reaches this level, it suggests that the possibility of a price correction is high.
Apart from that, some other metrics looked bearish for Bitcoin. For example, BTC’s aSORP turned red, indicating that more investors were selling for profit. In the middle of a bull market, this can indicate a market top.
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Furthermore, its binary CDD also followed a similar trend. This meant that the movement of long-term holders over the last 7 days was higher than average.
If they have been moved for the purpose of selling, this can have a negative impact. Considering these metrics, the possibility of a BTC price drop cannot be ruled out.
Source: CryptoQuant
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