As soon as the Bitcoin (BTC) price rallied past $69,000 it faced heavy selling pressure sending it down 7% from the top all the way to $63,500. Following this, the correction has ensued across the broader cryptocurrency market losing more than $150 billion in the last 24 hours.
Bitcoin (BTC) Price Eyeing 25% Correction?
Citing data from Santiment, renowned crypto analyst Ali Martinez issues a cautionary note regarding Bitcoin’s MVRV (Market Value to Realized Value) indicator, currently standing at 19.57%. Martinez highlights a concerning historical pattern, stating that each time the MVRV indicator surpassed the 18% threshold since February 2021, Bitcoin’s price plummeted by as much as 24% to 55%.
Given this trend, traders are urged to closely monitor the MVRV indicator as it suggests a looming possibility of a significant Bitcoin price correction. The analyst’s warning underscores the importance of vigilance and risk management strategies in navigating the volatile cryptocurrency market.
According to findings from CryptoQuant, on-chain data revealed a significant movement of 1,000 bitcoins, valued at approximately $69 million, to Coinbase. These Bitcoins’ movements happened from addresses associated with miners and date back over a decade. This movement occurred just prior to Bitcoin reaching new highs of around $69,000, followed by a subsequent decline to $62,000 on Tuesday
Bitcoin critic Peter Schiff took a jibe at investors stating: “Earlier today Bitcoin hit a new record high of over $69,200. About four hours later the price collapsed down to $59,300. That’s almost $10K per Bitcoin, for an intraday drop of a staggering 14.5%. Nothing that volatile can be described as being a safe haven or a store of value!”
BTC Buy The Dip Calls on the Rise
On-chain data provider Santiment reported that the fleeting celebration of Bitcoin’s all-time high was swiftly overshadowed by apprehensions as the price plummeted by 7%. Calls to buy the dip surged to their highest level in months. Historically, once the initial urgency subsides, this presents the real opportunity to capitalize on buying.
According to Santiment, total open interest on exchanges for Bitcoin has notably decreased following today’s all-time high for BTC. The decline in exchange open interest for Bitcoin signifies a reduction in overly speculative trading activity. This drop in open interest can be interpreted as a temporary removal of speculative excess from the markets.
Assuming funding rates stabilize, prices may experience fluctuations that are less influenced by futures and options positions, and more reflective of genuine supply and demand dynamics from traders, investors, and hodlers.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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