Key Points
- Over 92% of Bitcoin investors profited as the cryptocurrency surpassed $66k.
- A multi-year bearish pattern on Bitcoin’s chart suggests a potential market downturn.
Bitcoin (BTC) has been steadily increasing in value, recently surpassing the $66k mark. This development has been beneficial for the majority of BTC investors, but market indicators suggest a potential downturn in the near future.
Bitcoin’s Possible Downturn
Previously, it was reported that Bitcoin had surpassed its long-term moving average, breaking through key resistance levels and rallying to over $66k. This resulted in over 92% of BTC addresses being in profit. However, a popular crypto analyst, Ash Crypto, has pointed out a multi-year bearish head and shoulder pattern on BTC’s chart. This pattern, which emerged in 2021, could indicate a significant market crash if the support test fails.
Is a Correction Imminent?
Data from CryptoQuant suggests that BTC’s net deposit on exchanges is high compared to the weekly average, indicating an increase in selling pressure. This often leads to price corrections. Additionally, BTC’s aSORP turned red, suggesting more investors are selling at a profit. This could indicate a market peak. However, Glassnode’s data revealed a promising metric: BTC’s NVT ratio is dropping, suggesting the asset is undervalued and hinting at a potential price increase.
If the uptrend continues, as suggested by the NVT ratio, a sustained bull rally could push Bitcoin towards its all-time high. However, if a price correction occurs, Bitcoin could potentially drop to $54k in the coming weeks.