Analysts are sounding the alarm about a potential market correction as Bitcoin hovers near crucial support levels. Not, crypto analyst Ali has identified a concerning trend where around 5.45 million addresses hold 3.03 BTC, valued between $64,300 and $70,800.
This concentration of holdings creates a significant supply barrier that introduces the risk of a sharp market correction for Bitcoin. If the price continues to drop, these holders be inclined to sell in order to limit their losses, which would further intensify downward on the cryptocurrency.
Furthermore, recent market indicators suggest caution for Bitcoin investors. After experiencing over 4% decline last week, current data shows that Bitcoin is trading at $64, with a modest increase of 0.7% within the past 24 hours.
Quant analysts have drawn attention to an indicator called the “Adjusted Spent Output Profit Ratio” (asopr), which when combined with a 200-day moving average assess investors’ realization behavior in relation to Bitcoin. This indicator typically surpasses the 1.00 mark during bullish market phases, indicating that many investors are making profits and may continue holding their positions in anticipation of further gains.
Conversely, when this ratio rises to or 1.08, it often signals an impending market downturn based on historical patterns. With current asopr levels approaching this threshold of 1.08, it suggests that Bitcoin isariously poised for a similar retracement and calls for vigilance among traders and investors.
Tags: BTC