Bitcoin faces volatility as buying pressure defies signals
- Bitcoin (BTC) is under strong buying pressure, which may indicate a potential price correction.
- A sell signal was triggered by the TD Sequential indicator, suggesting a possible price drop to $66,000.
- However, on-chain data shows that investors continue to accumulate BTC, which could support the price.
- The market remains volatile, and short-term movements could occur both upwards and downwards.
Current Situation of Bitcoin
Bitcoin has lost momentum in recent days. Although the price has risen by more than 8% over the past week, the market has shown signs of slowing down in the last 24 hours. At the time of writing, the Bitcoin price is around $68,423.71, with a market capitalization of over $1.35 trillion.
A well-known crypto analyst named Ali recently shared an important signal on Twitter. According to his analysis, the TD Sequential indicator has triggered a sell signal for Bitcoin. This means investors may start selling their BTC holdings, which could lead to a price drop.
What Do the On-Chain Data Say?
Despite the sell signal, on-chain data from Glassnode shows that buying pressure on Bitcoin remains high. The so-called “Accumulation Trend Score” rose from 0.5 to 0.7 over the past week. This value measures how strongly larger market participants are accumulating Bitcoin. A value close to 1 indicates increasing buying activity.
Additionally, analysis from CryptoQuant shows that Bitcoin reserves on exchanges are decreasing. This means fewer BTC are available for sale on exchanges, reducing selling pressure. The net deposits of Bitcoin on exchanges are also low compared to the seven-day average, which is another sign of bullish market sentiment.
Is a Price Correction Imminent?
Although Bitcoin accumulation is increasing, there are signs of a potential price correction. The NVT ratio (Network Value to Transactions Ratio), which measures the ratio between market capitalization and transaction volume, has risen in recent days. An increase in this value often indicates that an asset is overvalued and a correction may be imminent.
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Furthermore, technical analysis shows that Bitcoin is bouncing off a resistance level. The Relative Strength Index (RSI) is approaching the overbought zone, which could also signal an impending correction. If selling pressure increases, the Bitcoin price could fall to $66,000. However, if buying pressure persists, BTC could even rise to $73,000.
Our Assessment
The Bitcoin market remains volatile, and short-term price fluctuations are to be expected. Although the TD Sequential indicator has triggered a sell signal, on-chain data suggests that many investors continue to accumulate BTC. This could support the price and prevent a sharper decline. Nevertheless, investors should remain cautious, as the market shows signs of being overvalued. A price correction to $66,000 is not ruled out, but an increase to $73,000 is also possible if buying pressure continues.
Sources
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $97,495.00 |
| 24h % | 4.60 % |
| 7d % | 7.57 % |
| 30d % | 45.71 % |
| 60d % | 55.12 % |
| 1y % | 160.37 % |
| Market Cap | $1,929,430,676,444.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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