Flow

bullish

Future

Bitcoin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s current valuation is considered overvalued, potentially leading to a price correction to $61k.</li> 
 <li>Analysis of various metrics and indicators suggest a possible short-term decline before regaining bullish momentum.</li> 
</ul>  
<p>After reaching nearly $65k, <a href="https://coineagle.com/price/bitcoin/">Bitcoin (BTC)</a> has shown signs of bearish behavior with its daily chart turning red. This has been accompanied by short-term holders deciding to sell their holdings.</p> 
<h2 id="increasing-selling-pressure-on-bitcoin">Increasing Selling Pressure on Bitcoin</h2> 
<p>Bitcoin’s price rose by more than 8% last week, enabling bulls to push the coin towards $65k on August 24th. However, the last 24 hours have seen a slight dip in BTC’s price. At the time of writing, Bitcoin was trading at $63,816.53 with a market capitalization exceeding $1.28 trillion.</p> 
<p>According to a tweet by intoTheBlock, monitoring short-term traders’ balances can provide valuable information. Historically, increases in this metric have often coincided with market peaks and troughs, offering useful market timing cues.</p> 
<h2 id="bitcoin-s-future-path">Bitcoin’s Future Path</h2> 
<p>To determine if BTC was at its market bottom, data from Glassnode was analyzed. The analysis showed that short-term holders were selling off, evidenced by a significant decrease in the total supply held by them over the last three months.</p> 
<p>Further analysis of BTC’s Pi Cycle Top indicator suggested that BTC was at its market bottom of $63.7k. If accurate, BTC could soon begin a bull rally, potentially reaching a market top of $102k in the upcoming weeks or months.</p> 
<p>Additional metrics were examined to assess the likelihood of Bitcoin starting a new bull rally. Analysis of data from CryptoQuant showed that BTC’s Coinbase premium was green, indicating strong buying sentiment among US investors.</p> 
<p>Bitcoin’s net deposit on exchanges was also low compared to the last seven-day average, signaling an increase in buying pressure. However, Bitcoin’s NVT ratio showed a sharp increase. Generally, a rise in this metric indicates that an asset is overvalued, which could suggest a price correction.</p> 
<p>Various market indicators also suggested a bearish outlook on Bitcoin. For instance, the Chaikin Money Flow (CMF) showed a decrease, and the Relative Strength Index (RSI) followed a similar trend. These indicators suggest that investors might see a short-term decline in Bitcoin’s price before it regains bullish momentum.</p>

Short-Term Bitcoin Holders Could Trigger a Fall to $61K: Here’s Why

Table of Contents

CoinEagle.com

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