Bitcoin faces correction risk amid bearish signals
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The Key Points in Brief
Bitcoin has experienced a price drop after the market went through a phase of optimism. Analysts are warning of a potential correction as a bearish pattern emerges. The rising inflows into Bitcoin ETFs (Exchange Traded Funds) have piqued investors’ interest, but uncertainty about future price developments remains.
Market Optimism Leads to Correction
Bitcoin (BTC) has undergone a price correction in recent days. After rising to USD 65,664, the price fell to USD 63,243. This occurred after a market phase characterized by optimism and “Fear of Missing Out” (FOMO) led to panic selling. According to the analysis platform Santiment, sentiment towards Bitcoin has significantly improved in recent weeks, which is often a sign of an impending correction.
Rising Inflows into Bitcoin ETFs
Another factor influencing market movements is the inflows into Bitcoin ETFs. On September 30, Lookonchain reported that Bitcoin ETFs recorded a net inflow of 7,111 BTC. This is equivalent to a value of approximately USD 453.42 million. A large portion of these inflows came from ARK21Shares, which increased its holdings to nearly 50,684 BTC. These institutional inflows are a sign that investors are speculating on a possible approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC).
Market in a Balanced State
The MVRV Index (Market Value to Realized Value), which measures the ratio between Bitcoin’s market value and realized value, currently stands at 1.85. This suggests that Bitcoin is being traded above its realized value but is not in an overheated phase. Historically, values above 3.5 have often signaled market peaks followed by corrections. Values below 1, on the other hand, indicate buying opportunities. The current value of 1.85 shows that the market is balanced, but both further correction and recovery are possible, depending on future market developments.
Bearish Pattern Creates Uncertainty
In addition to the balanced market situation, there are technical warning signs. An analyst known as Ash Crypto has pointed to a bearish “Head and Shoulders” pattern that has been developing on the Bitcoin chart since 2021. Should the price break the support line of this pattern, it could lead to another significant price decline.
Our Assessment
The current market situation presents a mixed picture. On the one hand, there are optimistic signals from rising ETF inflows and a balanced MVRV ratio. On the other hand, technical patterns and analysts are warning of a potential price drop. For investors, it is important to closely monitor market developments and be aware of the risks associated with Bitcoin’s high volatility. A balanced strategy and avoiding emotionally driven decisions could be crucial during this phase.
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| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
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| Price | $68,180.00 |
| 24h % | 1.94 % |
| 7d % | 11.15 % |
| 30d % | 14.68 % |
| 60d % | 15.95 % |
| 1y % | 140.84 % |
| Market Cap | $1,353,705,047,346.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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