By Billie Harvill
Briefly –
- Bitcoin sees to extend its slowed down moves that started on 21 October.
- A decisive close under its weekly open near $61,574 might catalyze a crash
- On-chain metrics show the asset’s network condition, forecasting a near-term price correction.
Bitcoin started surging as the updates on ETF authorization gained mainstream momentum. The lucrative moves had Bitcoin shattering its previous ATH, recording another one past $66,000. Though the impressive rally, things seem to slow down now, suggesting a slight dip before the next upsurge.
Bitcoins Appears Weak
Bitcoin witnessed its price surging 79% from 21 September to 20 October. Although with that remarkable rally, two reasons support Bitcoin’s retracement in the upcoming trading sessions. Keep in mind that BTC broke past $65,163 resistance and created a daily close beyond the area. However, the world’s largest coin saw a rejection afterward, losing 5.8% in the following day. Such actions reflect profit-taking in the market.
Bitcoin’s current position appears to support a double top pattern, a formation that indicated price reversals. Though these are the reasons supporting BTC’s correction, the fading hype on BTC ETF and the considerable gaps in Volumes confirm that Bitcoin is ready for pullbacks. The figure indicates gaps near the psychological barrier at $60,000 and $53,000. That way, a significant-close under the coin’s weekly open near $61,574 will suggest buyers’ weakness, knocking Bitcoin towards the levels highlighted above.
Also, the monthly MVRV supports the drop mentioned earlier. The model shows almost 20% of traders that bought $BTC last month enjoy profits. Keep in mind that this metric determines the average loss/profits by holders that bought Bitcoin.
Meanwhile, any reading past 10% by the monthly MVRV is worth investors’ attention. As the figure stands at 18%, market players might witness BTC dropping whenever these investors book profits. Also, BTC’s funding rate touched 0.17% on ByBt and 0.03% on various exchanges, showing investors coiling their accounts for profits. That also supports the anticipated near-term retracement.
Though things might appear lucrative for BTC on a long-term outlook, on-chain metrics and technicalities indicate slight bearishness in the short term. The currency has chances of hitting $55,000, then $53,000. However, a considerable daily close of over $66,000 will translate to uptrend resurgence, despite the bearish sentiments by the lower time frames. Such upside actions can see BTC hitting the 161.8% FIB extension at $77,909, another ATH.