Bitcoin Rally Stalls: Is a Correction Imminent?

user avatar

by Giorgi Kostiuk

2 years ago

Bitcoin's recent advances have stalled as a sell signal appeared on its daily chart, hinting at a possible correction.

Bitcoin's Bull Run Takes a Pause

In recent weeks, Bitcoin has overcome multiple resistance levels, creating excitement among investors with hopes of reaching $100k. However, after hitting $91k, a sell signal emerged on the chart. Crypto analyst Ali noted on Twitter that Bitcoin’s TD sequential indicated a sell signal. The rally indeed slowed following this signal with Bitcoin's value dropping more than 3% in the past 24 hours, trading under $90k at $87,524.10. It has also been reported that the crypto market is currently in an 'extreme greed' phase, similar to the rise in March when Bitcoin hit $73k before dropping to $67k.

Current Position and Prospects

Despite the current market sentiment, investors are advised to remain patient. The Bitcoin Rainbow Chart indicates that Bitcoin's price is in the 'HODL' position, suggesting potential benefits for those holding Bitcoin. Data from Glassnode shows a significant drop in Bitcoin's NVT ratio last week despite the recent major price increase.

Future Direction of Bitcoin

Currently, Bitcoin is testing its support near $86k on its daily chart. A successful test could trigger another bull rally. However, if the support fails, Bitcoin might fall to the range of $76k-$80k. A further decline could push Bitcoin near the $70k mark. Furthermore, Bitcoin’s exchange reserve has been declining over the past 24 hours, indicating that investors are not panic selling, which may help prevent further price drops.

While current signals suggest a possible correction, key metrics show that Bitcoin is undervalued, indicating potential for future price gains.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

NEAR Protocol Achieves 50 Million Operations Milestone

chest

NEAR Protocol's chain abstraction infrastructure has surpassed 50 million lifetime operations, marking a significant achievement in simplifying multichain crypto interactions.

user avatarArif Mukhtar

Solana Sees Significant RWA Inflows

chest

Solana has recorded $348 million in net inflows of real-world assets over the past 30 days, increasing its tokenized RWA value to $720 million.

user avatarMaria Gutierrez

Aave Governance Considers Emergency Powers to Protect Users

chest

Aave governance is considering a proposal to grant emergency powers to guardians to freeze vulnerable lending pools during security threats.

user avatarDavid Robinson

Router Protocol Users Must Move Assets During Grace Period

chest

Router Protocol users must take action during the grace period to bridge assets back to origin chains before relayer nodes are disconnected.

user avatarJacob Williams

Arbitrum Proposes Disqualification of Three DeFi Protocols from Future Grants

chest

A new governance proposal by Arbitrum aims to disqualify three DeFi protocols from future DAO grant allocations due to alleged reporting failures and misuse of prior incentives.

user avatarAndrew Smith

Router Protocol to Shut Down Crosschain Network and Burn 303 Million Tokens

chest

Router Protocol has announced a deprecation plan to shut down its crosschain messaging network and burn 303 million ROUTE tokens due to unsustainable maintenance costs.

user avatarZainab Kamara

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.