Bitcoin at a Crossroads: Is a Price Correction Ahead After Sell Signals?

Technical Picture:
⬆ Fresh High
⬆ DeMarker continues entering overbought territory
⬇ Megaphone prints a 7
⬇ Sequential prints a 9 and 13
⬆ Breakout of diagonal resistance

In conclusion:
I expect the price to correct to the strong support zone of $65,645. If a successful down test occurs, it will likely head toward the diagonal resistance around $71,124.

Alternatively:
If the correction to the strong support zone of $65,645 fails, the price will likely test the diagonal support around $62,022.

Fundamentals:
The latest report also hinted at a price correction. AMBCrypto plans to analyze BTC’s on-chain metrics to determine whether this correction will continue or if the trend will reverse again. Bitcoin has lost its bullish momentum. According to CoinMarketCap, its price increased by over 8% in the last seven days. At the time of writing, Bitcoin is trading at $69,082, with a market capitalization exceeding $1.35 trillion. Meanwhile, Ali, a popular crypto analyst, recently tweeted about a significant development. According to the tweet, Bitcoin’s key indicator, the TD Sequential, is signaling a sell. This suggests that investors may begin selling the cryptocurrency, which implies a potential price drop due to increased selling pressure.

Source: Glassnode
However, according to our analysis of data from Glassnode, investors are starting to buy more BTC. It was revealed that the BTC accumulation trend score increased from 0.5 to 0.7 last week. The accumulation trend score reflects the relative size of entities actively accumulating coins on the network in relation to their BTC holdings. A number closer to 1 represents an increase in buying pressure.

Is a Bitcoin correction coming?
AMBCrypto delved deeper to understand what to expect from Bitcoin in the coming days. Bitcoin’s Network Value to Transaction (NVT) ratio has increased over the past few days. Any rise in this metric indicates that the asset is overvalued, suggesting a price drop in the near future. However, BTC reserves on exchanges have been decreasing, indicating that selling pressure is weakening. The fact that investors are still buying BTC was further confirmed by the net Bitcoin deposit on exchanges. Specifically, the net Bitcoin deposit on exchanges was low compared to the seven-day average. Both indicators were bullish, as strong buying pressure tends to drive prices up.