Bitcoin (BTC) might be on the verge of a market correction, suggested by key on-chain metrics analyzed by CryptoQuant.
'Dead Cross' Signal and Its Implications
According to data from the analytics firm CryptoQuant, the emergence of a 'Dead Cross,' a bearish crossover where Thermo Cap dips below Realized Cap, has historically correlated with significant Bitcoin price corrections. This signal has put some traders on edge regarding short-term price action.
Overview of Realized Cap and Thermo Cap Indicators
The Realized Cap represents the aggregate network valuation of Bitcoin based on the price at which each coin last moved on the blockchain. Thermo Cap, on the other hand, represents the thermal power of the network. These indicators aid in understanding the overall market state according to analysts.
Potential Impact on Bitcoin's Price
If past trends recur, Bitcoin might retreat toward the $75,000 support level, despite the widespread bullish sentiment observed in the market.
The analysis based on the 'Dead Cross' suggests a risk of Bitcoin price correction in the near future, signaling traders to remain cautious in their investment decisions.
