In light of Bitcoin's recent performance, several analysts highlight signs pointing to a potential price correction.
The Bearish Signals
Bitcoin reached a record $92,000 following Donald Trump’s victory in the US presidential elections. Yet, several indicators suggest possible price decline. The RSI indicates overbought conditions at 77. The MVRV ratio stands at around 2.6, usually a precursor to market tops. The NVM ratio is 1.24, suggesting overvaluation.
The Extreme Greed
The Fear and Greed Index is in 'extreme greed' territory, a condition often preceding price corrections due to active buying and a FOMO effect.
Bitcoin's Profitability Metrics
Data shows 99% of Bitcoin investors are in profit, potentially indicating a short-term correction, as seen in prior instances.
While current metrics may hint at a potential Bitcoin correction, predicting price movements in the volatile crypto market remains challenging.
