Key Points
- Bitcoin’s price shows signs of recovery despite recent corrections.
- Market indicators suggest potential for another price correction.
Bitcoin appears to be recovering, with both weekly and daily charts in the green.
However, market indicators and metrics hint at the possibility of another price correction.
Challenges to Bitcoin’s Rally
Bitcoin has been facing difficulties in maintaining its rally, struggling to exceed $66k.
Despite this, the last 24 hours have shown promising signs, with the coin’s price increasing by over 1.5%.
At the time of writing, Bitcoin was trading at $63,896.05.
The recent price increase has resulted in 48.9 million Bitcoin addresses being profitable, accounting for 91% of all Bitcoin addresses.
However, the rally may not continue, with chances of it coming to an end.
Possible Future for Bitcoin
Analysis of Glassnode’s data suggests a potential halt to the Bitcoin rally, with an increase in the coin’s NVT ratio.
A rise in this metric indicates an overvalued asset and suggests a price correction.
The coin’s long/short ratio has also decreased, indicating more short positions in the market than long ones.
An increase in short positions is often interpreted as a bearish signal.
However, not all indicators suggest a bearish future for Bitcoin. For example, Bitcoin’s exchange reserve has been decreasing according to CryptoQuant.
A decline in this metric suggests a rise in buying pressure, which often leads to price increases.
Technical indicators on Bitcoin’s daily chart appear bearish, with the MACD showing a bearish advantage in the market.
Additionally, the coin’s Chaikin Money Flow (CMF) has registered a downtick, indicating a potential price drop.
Should this occur, Bitcoin could drop to $60k. However, if the price continues to rise, Bitcoin may test its resistance at $65.4k once again.