Key Points
- Bitcoin’s recent recovery may be short-lived, with market indicators suggesting another price correction.
- Despite a recent price increase, technical indicators hint at bearish market conditions for Bitcoin.
Bitcoin’s price has shown signs of recovery recently, with positive weekly and daily charts. However, the cryptocurrency has experienced several price corrections in recent weeks, causing some disruption to its rally.
The past week has seen some price increases, providing a slight advantage for investors. Yet, a recent report suggests that another correction may be on the horizon for Bitcoin.
Bitcoin’s Struggling Rally
Bitcoin’s rally has been facing challenges, particularly in breaking the $66k mark. However, the last 24 hours have shown some improvement. According to CoinMarketCap, Bitcoin’s price rose by more than 1.5%, trading at $63,896.05 at the time of writing.
This price increase has resulted in 48.9 million Bitcoin addresses being profitable, accounting for 91% of all Bitcoin addresses. However, the possibility of the rally ending remains.
Ali, a well-known cryptocurrency analyst, noted that Bitcoin’s price was moving within a certain channel and had already faced rejection three times when nearing the pattern’s resistance. This suggests that the recent bullish momentum may not be sustainable.
Future Predictions for Bitcoin
An analysis of data from Glassnode indicates that Bitcoin’s NVT ratio has increased, suggesting that the asset may be overvalued and hinting at a potential price correction. Additionally, the long/short ratio has dropped, indicating a higher number of short positions in the market – a bearish signal.
However, not all indicators are bearish. For instance, Bitcoin’s exchange reserve has been dropping according to CryptoQuant, suggesting that buying pressure is increasing, which often leads to price increases.
Technical indicators on Bitcoin’s daily chart appear bearish. The MACD shows a bearish advantage, while the Chaikin Money Flow (CMF) indicates a potential price drop. If this occurs, Bitcoin could fall to $60k. However, if the price continues to rise, Bitcoin may test its resistance at $65.4k once more.
