Bitcoin Price Correction on the Horizon
The price of Bitcoin (BTC) has been steadily climbing, fueled by speculation of a spot Bitcoin Exchange-Traded Fund (ETF). However, on-chain data suggests that a price correction may be imminent.
Strong Performance and Lack of Correction
Over the past 13 weeks, Bitcoin has experienced 11 positive weekly closings and only two negative ones. This has resulted in a rally of over 70%, with the price rising from $27,000 to $47,000. Despite this impressive performance, there has yet to be a significant correction.
CryptoQuant Predicts a Correction
CryptoQuant, a leading blockchain analytics platform, believes that a correction is due in the near future. While the approval of ETFs may boost Bitcoin demand, CryptoQuant points to several on-chain indicators that signal a potential correction. These indicators include high levels of unrealized profits from Bitcoin holders.
Potential Selling Pressure from Miners
In addition to the indicators mentioned above, there is also potential selling pressure from miners depositing their Bitcoin to centralized exchanges. F2Pool, one of the largest mining pools, recently sent 1,000 BTC to Binance. According to CryptoQuant, this is the largest daily outflow from F2Pool since August 2023.
A Price Correction Looms
Based on the data and analysis provided by CryptoQuant, it appears that a price correction for Bitcoin is likely in the near future. While the anticipation of a spot Bitcoin ETF has driven up demand for BTC, various factors indicate that a correction cannot be ruled out. It will be interesting to see how the market reacts and adjusts as this correction takes place.
Hot Take: Bitcoin’s Price Correction is Inevitable
The recent surge in the price of Bitcoin has been impressive, but it seems that a correction is on the horizon. On-chain data and indicators from CryptoQuant suggest that the market may be due for a downturn. Factors such as unrealized profits from Bitcoin holders and potential selling pressure from miners depositing their Bitcoin to exchanges point to an imminent correction. As an investor or crypto enthusiast, it’s important to stay informed and be prepared for potential market fluctuations. Keep a close eye on the market and adjust your investment strategy accordingly.
By
By
By
By