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

Pirate Chain Developers Report Major Vulnerability

Pirate Chain developers disclosed a significant vulnerability leading to the creation of approximately 398 million unauthorized ARRR tokens, raising urgent questions about network supply and trust.

user avatarSatoshi Nakamura

Crypto King Aiden Pleterski Faces Criminal Charges Over Misuse of Investor Funds

A Canadian court hears evidence that Aiden Pleterski misused investor funds for personal expenses.

user avatarJesper Sørensen

BinanceUS Seeks $100 Million in Fundraising Round

BinanceUS is reportedly pursuing a $100 million fundraising round at a valuation of approximately $1 billion to strengthen its position in the American cryptocurrency market.

user avatarRajesh Kumar

Consulting Arrangement Raises Questions About Tether and Bo Hines

A reported $63 million consulting arrangement between Tether and Nxum, linked to former White House adviser Bo Hines, has sparked concerns over potential conflicts of interest.

user avatarLucas Weissmann

Arbitrum Engages European Financial Institutions on Blockchain Infrastructure

Arbitrum representatives presented the network's infrastructure and revenue model to European financial institutions managing substantial assets, discussing its commercial potential and the value of blockchain services.

user avatarFilippo Romano

Grayscale Partners with Republic to Launch Specialized Crypto Funds

Grayscale and Republic have launched three specialized cryptocurrency funds with a minimum investment of $2,500 for accredited investors, focusing on decentralized finance, artificial intelligence, and blockchain data infrastructure.

user avatarEmily Carter

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.