- A sell signal appeared on BTC’s daily chart, indicating a correction.
- Bitcoin was testing major support, and the NVT ratio indicated that BTC was undervalued.
After successfully crossing the $91,000 mark, Bitcoin [BTC] suffered a correction, causing the king coin to fall below $90,000 again. In fact, the latest data already pointed to the possibility of a correction. Does this mean BTC was ready for more price drops?
Bitcoin’s bull rally stops
Bitcoin has broken through several resistance levels in recent weeks. This sparked excitement in the community about BTC reaching the next $100,000 mark.
However, shortly after reaching $91,000, a sell signal appeared. Ali, a popular crypto analyst, recently posted one tweet which showed that Bitcoin’s TD sequential gave a sell signal.
BTC’s rally stalled after the signal appeared as its value fell by more than 3% in the past 24 hours. At the time of writing, BTC was trading below $90k at $87,524.10.
Apart from this also AMBCrypto reported rather that the crypto market was in a phase of “extreme greed”. This was similar to the rise in March when Bitcoin reached $73,000 before crashing again to $67,000.
Also at the time of writing the fear and greed index had a value of 80, indicating a similar greedy sentiment in the market.
But investors must remain patient. The Bitcoin Rainbow Chart pointed out that the price of the king coin was in the “HODL” position, meaning it might be right for investors to hold their BTC.
Source: Blockchaincenter
Glassnode’s data showed that despite the latest major price pump, Bitcoin’s NVT ratio took a huge dip last week. When the measure falls, it means an asset is undervalued, indicating a price increase in the coming days.
Another good news for BTC was the decline exchange reserve in the last 24 hours. This indicated that investors were not panic selling, which could prevent a sharp price drop in the short term.
Source: Glassnode
Checking the nearest BTC support
Checking Bitcoin’s daily chart is often a good option to look for immediate support and resistance zones when prices remain volatile.
Read Bitcoins [BTC] Price prediction 2024–2025
The price of BTC had reached the upper limit of the Bollinger Bands and at the time of writing, it was testing its support near $86,000. A successful test of support could trigger another bull rally.
Nevertheless, if Bitcoin fails to do so and slips below support, it could fall to the $76,000-$80,000 range. A further price drop from that range could push BTC towards the $70,000 mark again.
Source: TradingView
