Bitcoin traders are now focusing on the potential for the cryptocurrency to hit the $100,000 threshold, as its price sustains above $90,000 in weekly closeouts. However, recent on-chain data indicates that a price correction of approximately 10-15% could be imminent, possibly taking Bitcoin down to $76,000 before any upward movement toward $100,000 resumes.
What Signals are Emerging from On-Chain Data?
Several critical on-chain metrics suggest that Bitcoin may be due for a price pullback. Noted crypto expert Ali Martinez emphasizes that these indicators are raising alarms about the current market conditions.
What Support Levels Should Traders Watch?
The Bitcoin fear and greed index currently sits at 83 out of 100, reflecting an atmosphere of extreme greed among traders. This sentiment is further bolstered by a spike in Bitcoin-related searches, particularly from retail investors.
During the recent price surge, traders have taken profits amounting to $5.42 billion, which could escalate selling pressure. The TD Sequential indicator has also issued a sell signal. If Bitcoin manages to close above $91,900, it could pave the way for a journey toward the coveted $100,000 mark. Nevertheless, should a correction occur, initial support levels are found between $85,800 and $83,250, with deeper corrections targeting ranges of $75,520 to $72,880.
- Traders should monitor key support levels for potential entry points.
- Market sentiment indicates heightened greed, which could lead to volatility.
- Strategic planning is essential due to the rapidly changing market conditions.
The next few days could prove critical for Bitcoin traders as they navigate the fine line between potential profit and market correction. Vigilance in monitoring technical indicators and market trends will be crucial for successful trading strategies.
