- BTC’s NVT golden cross reached 8.49, suggesting a possible market top.
- Most of the metrics were bearish, but whale accumulation increased.
Bitcoin [BTC] managed to stay above $25,000 for a few days, which gave investors a reason to celebrate. As per CoinMarketCap, BTC was up by over 5% in the last 24 hours.
At the time of writing, it was trading at $25,999.75 with a market capitalization of over $502 billion. However, the celebration might be nearing an end as BTC might be subjected to yet another price correction.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Sell pressure to increase soon?
Onchain Edge, an author, and analyst at CryptoQuant, recently published an analysis that suggested the possibility of a price correction.
As per the post, BTC’s Network Value to Transaction (NVT) golden cross reached 8.49. This indicated a possible market top, which can result in increased selling pressure.
Therefore, BTC’s price might plummet in the near term. To clear the air, the NVT Ratio describes the relationship between market cap and transfer volume. The NVT Golden Cross indicator helps traders decide whether to buy or sell a cryptocurrency.
Source: CryptoQuant
Selling pressure might already have increased as CryptoQuant’s data revealed that BTC’s exchange reserve was rising. Not only that, but BTC’s aSORP was red, suggesting that more investors were selling at a profit.
Thus, increasing the chances of a trend reversal. As per Santiment’s chart, BTC’s supply on exchanges increased while its supply outside of exchanges went down, which was by and large a bearish signal.
Positive sentiments around BTC also seemed to have declined over the last few days, which was evident from the weighted sentiment metric.
Source: Santiment
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Investors should not panic yet!
Despite all the negative signals, things might continue to remain in BTC’s favor in the near term. Santiment revealed that BTC recently witnessed the largest whale transaction of the year. 40,157 BTC were sent to a whale address recently, which earlier held a high of 143,310 BTC.
A $1B #Bitcoin transaction has been sent to 3M219KR5vEneNb47ewrPfWyb5jQ2DjxRP6. This is the largest $BTC on-chain transaction of the year. The address held a high of 143,310 $BTC in October, was emptied out in November, and is now back to 40,141 $BTC. https://t.co/l9K3Qu8J2M pic.twitter.com/1yVJpKqjPK
— Santiment (@santimentfeed) March 16, 2023
Well, this whale activity suggested that the big players still had faith in BTC as they continued to increase accumulation. On the other hand, Glassnode alerts pointed out that BTC’s Exchange Outflow Volume (7d MA) just reached a 3-month high of $49,869,358.36, which was a bullish development.
BTC’s funding rate was also high, reflecting its demand in the derivatives market. Bitcoin’s taker buy-sell ratio suggested that buying sentiment was still dominant in the market.
The situation seemed ambiguous, therefore, which way BTC’s price heads in the future is a question that only time can answer.
