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 Hiding Place 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, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Hut 8 Wins Bid for Poolin's Texas Datacenter Sites

Hut 8 has successfully bid $140 million for two datacenter sites owned by the bankrupt mining company Poolin.

user avatarLucas Weissmann

Senate Banking Committee Democrats Request Hearing on Prediction Markets

Democratic members of the Senate Banking Committee request a public hearing to examine the growing issue of prediction markets and their regulatory implications.

user avatarFilippo Romano

Crypto Economic Activity Remains Strong Despite Market Downturn

Crypto economic activity has shown resilience despite a significant drop in market capitalization, indicating a shift in market dynamics.

user avatarEmily Carter

Visa's Research Highlights Trust as a Barrier to Stablecoin Adoption

Visa's research highlights that trust and fraud protection are essential for stablecoin adoption, with 36% of US respondents considering their use, especially with bank-level protections.

user avatarTomas Novak

Cardano's Onchain Governance Approves New Treasury Allocations

Cardano's governance system has approved a new round of treasury allocations aimed at infrastructure and ecosystem development.

user avatarKaterina Papadopoulou

Galaxy Invests $100 Million in Onchain Credit Infrastructure

Galaxy has invested $100 million in Sky Protocol's yield-bearing sUSDS, integrating it into its corporate treasury and allowing it as collateral for institutional trading.

user avatarMaya Lundqvist

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.