- BTC has risen more than 10% in the past seven days, along with a surge in volume.
- Selling pressure on BTC increased, which could cause a trend reversal in the coming days.
Bitcoin [BTC] surprised investors again with its bullish price action over the past week. Thanks to the uptrend, BTC finally managed to push its price above $30,000.
Bitcoin’s dominance reaches its highest point in more than two years. pic.twitter.com/dj1nhS4Lyy
— Altcoin Daily (@AltcoinDailyio) October 22, 2023
Read Bitcoins [BTC] Price prediction 2023-24
The rise in its value also pushed the dominance of the king of cryptos to the highest level in the past two years.
However, investors should be cautious as some recent numbers indicate that the price of BTC could see a price correction soon. Therefore, a closer look at Bitcoin’s health report could shed light on what we can expect from the coin in the coming days.
Bitcoin Investors Enjoy Profits
Bitcoin’s price rose more than 10% over the past week, allowing it to rise above $30,000. According to CoinMarketCapAt the time of writing, BTC was trading at $30,735.06 with a market cap of over $599 billion.
Not only did the price of the coin rise, but the daily trading volume also increased by 23%, which is generally a positive signal.
Thanks to the increase in its value, BTC price volatility went up over a week. It was surprising to see that BTCThe price of the market took a northward course, the social volume fell. Weighted sentiment has also fallen sharply in recent days.
Source: Santiment
A possible reason for the drop in BTC’s weighted sentiment could be that investors were expecting a short-term price correction. A popular crypto analyst recently posted a tweet on X (formerly Twitter) highlighting a bearish indicator.
It was striking that a head and shoulders pattern formed BTC‘s daily chart.
There is a lot of talk about a possible head and shoulders pattern #Bitcoin daily chart. Let’s dissect it!
The $BTC The daily chart indicates a possible sell signal tomorrow, based on the TD Sequential indicator flashing a green 9 candlestick. Not to mention, the… pic.twitter.com/h7CiwRFcHb
— Ali (@ali_charts) October 22, 2023
The pattern indicates a possible sell signal, based on the TD Sequential indicator flashing a green 9 candlestick.
For the uninitiated, a head-and-shoulders pattern is a kind of technical designation consisting of three peaks on the chart, with the middle peak being the highest and the outer two being almost high.
Bitcoin selling pressure could increase
Not only the pattern, but several statistics also suggested that BTC might witness a price correction. The RSI went above 71 – an indication of increasing selling pressure. Furthermore, HyBlock’s data revealed that when BTCThe company’s share price nearly reached $32,000 in July and liquidations spiked.
Since the price of BTC showed the possibility of reaching the same level in the coming days, investors could also see a rise in liquidation this time.
Source: Hyblock Capital
CrypoQuant’s facts also pointed out a few statistics showing that investors were already selling BTC. Notably, the king of cryptos’ net deposits on the exchanges were high compared to the average over the past seven days.
The aSORP also turned red, meaning more investors are selling at a profit. In the middle of a bull market, this could indicate a market top. The Taker Buy/Sell ratio was also in the red.
The measure clearly showed that selling sentiment was dominant in the derivatives market. Interestingly, BTC supply outside of exchanges leveled off last week. However, after a dip, supply on the stock exchanges rose slightly, increasing the chance of a crossover in the coming days.
Source: Santiment
Another notable metric was the number of BTC whale transactions, which remained relatively high over the past week. Moreover, BTC‘s Open Interest rose along with the price, which is generally a bullish signal.
But this time, the metric reached the same level as that in July 2023, after which the price of the coin plummeted.
Source: Coinglass
What can you expect from BTC?
A look at BTC’s press-time chart provided a better insight into whether investors could expect a near-term price correction. Most importantly, Bitcoin’s price reached the upper limit of the Bollinger Bands, which could trigger a trend reversal.
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The Chaikin Money Flow (CMF) also recorded a decline.
Nevertheless, the MACD showed optimistic signals as it showed a bullish crossover on October 17. BTCThe Money Flow Index (MFI) also rested comfortably above the neutral line, raising the chances of a sustained price rise in the coming days.
Source: TradingView
