Leading cryptocurrency Bitcoin After reaching $69,000 on March 5, it encountered strong selling pressure and fell to $59,000.
Some analysts say during this correction BTC’While we think that it has found strong support and the rise will continue, some analysts think that the correction will continue further.
While there was a dilemma about whether the rise in Bitcoin would continue or not, CryptoQuant analysts evaluated the current situation and data in BTC.
who shared a detailed post from his account CryptoQuant analysts discussed overheating signals and correction risks that should not be overlooked despite the current bullish momentum in Bitcoin.
In other words, analysts argue that despite the current upward momentum in Bitcoin, some data points to a correction.
According to this Bull-Bear Market Cycle Indicator, miners’ extreme profitability rates and short-term investors starting to sell He said that it points to overheating in Bitcoin and is a correction signal for the price.
“There are overheating signals and correction risks in Bitcoin that should not be overlooked.
Despite the current bullish momentum in Bitcoin, many indicators point to potential overheating. Let’s examine them:
1-CryptoQuant’s Bullish-Bearish Market Cycle Indicator marked the Overheated Bullish phase as prices surged above $65,000, which could be a possible correction signal for BTC.
2-Miners are now earning extremely high income and profitability is reaching its highest level since December 2023. This may be a signal that miners may sell and BTC corrects with selling pressure.
3-Investors’ unrealized profit margins have reached 57%, an alarming rate that has historically been associated with impending corrections.
Additionally, short-term investors began selling at the highest profit margins since February 2021, potentially heralding increased selling pressure.”
#Bitcoin overheating signals and correction risks that shouldn’t be overlooked 🧵
Despite the bullish momentum, several indicators signal potential overheating. Let’s dive into them ⬇️
— CryptoQuant.com (@cryptoquant_com) March 8, 2024
*This is not investment advice.
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