- More than 98% of BTC addresses made profits, thanks to the bullish price trend.
- Accumulation was high, but indicators suggested Bitcoin was becoming overvalued.
Bitcoin [BTC] met investor expectations last week by pumping up the price well enough. However, the king coin has started to consolidate in recent days as it continues to move towards the $100,000 mark.
Meanwhile, a crucial BTC metric turned bearish, signaling a pullback.
Bitcoin Investors Are Turning ‘GREEDY’
BTC managed to increase its price by 8% last week. Basically AMBCrypto reported rather that this push allowed BTC to convert its resistance at $96,000 into a new support, indicating a further rise above $100,000.
Thanks to that, 53.24 million BTC addresses made profits, which accounted for 98% of the total number of Bitcoin addresses.
Source: IntoTheBlock
However, the coin started consolidating over the past 24 hours as the daily chart turned red. At the time of writing, the king coin was trading at $97.7k. While that was happening, Ali Martrinez, a popular crypto analyst, posted tweet which shows a remarkable development.
According to the tweet, long-time BTC holders were showing signs of growing greed. Historically, this behavior suggests that it could take 8 to 11 months for BTC to reach a market top.
If this proves to be true on this occasion, BTC reaching a market top could be delayed. To be precise, investors could not see BTC reaching that level until June or September 2025.
Source:
Review of BTC’s statistics
To see if the increasing greed in the market will lead to a correction, AMBCrypto reviewed Glassnode’s data. After a sharp decline, Bitcoin’s NVT ratio started to rise again. This meant that BTC became overvalued, indicating that a price drop would occur soon.
Nevertheless, the market as a whole remained bullish on BTC. This was evident from the coin’s accumulation trend score, which had a value of over 0.9.
For initiators, a value closer to 1 indicates high purchasing pressure. In general, increasing purchasing pressure results in continued price increases. Therefore, the chance of BTC being unaffected by the increasing greed in the market cannot yet be ruled out.
Source: Glassnode
Apart from that, Bitcoin Open interest (OI) also remained high. Whenever the measure rises, it indicates that there is a good chance that the ongoing price trend will continue. Nevertheless, a look at BTC’s daily chart showed the coin testing trendline resistance.
Read Bitcoins [BTC] Price prediction 2024-25
The MACD showed the chances of a bearish crossover. Moreover, the Relative Strength Index (RSI) was in the overbought zone.
This could lead to a sell-off, which could prevent BTC from breaking above resistance in the short term.
Source: TradingView