Bitcoin traders are focusing on the $100,000 mark, while on-chain data warns of a potential price correction.
On-Chain Data Analysis
Five key on-chain metrics signal a significant likelihood of a price pullback for Bitcoin. Popular crypto analyst Ali Martinez notes these metrics are providing warnings regarding the market. The current Bitcoin fear and greed index stands at 83/100, indicating a dominance of extreme greed. Martinez points out that this sentiment is supported by the surge in Bitcoin-related searches among retail traders.
Key Support Levels
During the recent rally, investors realized profits amounting to $5.42 billion, which may increase selling pressure in the market. The TD Sequential indicator on the daily chart has issued a sell signal. Martinez stated that if Bitcoin closes above $91,900, it could move towards the $100,000 mark. In the event of a correction, the first support range will be between $85,800 and $83,250. If there is a more substantial decline, the range of $75,520 to $72,880 comes into focus.
Risks and Opportunities for Traders
Possible corrections in Bitcoin’s price signify both risks and opportunities for traders. Technical indicators and support levels should be monitored closely. Rapid movements in the market necessitate strategic actions, prompting traders to keep a close watch on market trends.
Traders should be ready for strategic actions in volatile market conditions and closely monitor changes to take advantage of arising opportunities.
