Bitcoin investors have been looking forward to $100K levels as the bulls hold BTC above $90,000 on the weekly close. However, the latest on-chain data and metrics indicate Bitcoin price could face a steep correction of 10-15% ahead. This means that BTC price may slip to $76,000 first before resuming the next rally to $100K, which is also in line with technical chart patterns.
Five on-chain metrics suggest that the Bitcoin price could be heading for a steep correction, with chances of taking a dive under $80,000. Popular crypto analyst Ali Martinez has mentioned five such metrics that flash warning signs ahead.
The Bitcoin fear and greed index highlights the market sentiment on a scale of 1-100 with close to 100 being the condition of extreme greed and close to 1 being extreme fear. Currently, the score is 83/100 which shows a condition of extreme greed and caution ahead.
Analyst Ali Martinez noted: “This greed has spilled over retail investors as seen in a significant spike in Google search interest for Bitcoin”.
Analyst Martinez also noted that during the recent Bitcoin price rally, investors have realized $5.42 billion in profits, coinciding with a significant increase in the sell-side risk ratio, which has now reached 0.524%. Elevated sell-side risk ratios often signal increased selling pressure, potentially leading to heightened market volatility. Thus, as profit-taking grows, investors should maintain caution moving ahead, said Martinez.
From a technical perspective, the BTC TD sequential indicator presents a sell signal on the daily BTC chart. This signal will only be invalid if the Bitcoin price gives a daily close above $91,900, which could further propel it to a $100K Bitcoin rally.
The Bitcoin RSI levels have now surged past 70 showing that the BTC price is currently in the overbought territory, while hinting at a potential price correction ahead. The RSI indicator is helpful in identifying trends and typically oscillates between 30-90. An RSI under 30 indicates oversold condition while above 70 shows overbought conditions.
As reported by CoinGape, selloffs by Bitcoin miners last week following the recent run-up triggered a decline in prices. This could potentially put a break to the $100K rally ahead. The continued selloff comes amid profit-book with BTC mining companies reporting lower-than-expected revenue during the last quarter.
Crypto analyst Ali Martinez has identified critical support levels for the Bitcoin price in the event of a price correction. Martinez noted that the first major support range lies between $85,800 and $83,250, with a secondary support zone at $75,520 to $72,880. Per the supply-demand data shared by Martinez, these are the critical areas where investors have bought BTC.
As of press time, the BTC price is trading at $91,160 with a market cap of $1.8 trillion. It will be interesting to see the battle between the bulls and bears in this tight fight at around $90,000.
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