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Bitcoin Price Top Incoming? Key BTC Metrics to Watch
The recent downturn in Bitcoin’s (BTC) price has led many investors and traders to question whether the top is near. Despite the current selling pressure, data suggests that the market may not have reached extreme euphoria yet, leaving room for a potential upward movement.
According to analysts, tightening dollar-denominated liquidity and declining equity markets are driving the recent downturn in Bitcoin’s value. As the activity of sellers increases among holders, the price has dropped by 1.59%. This significant sell-off has led to over $123 million in liquidations across the market, with the majority being larger BTC holders.
The data provided by Glassnode highlights a notable shift in the market dynamics. The Trend Accumulation Score, which measures the number of buyers and sellers in the market, is approaching zero. Traditionally, this score would indicate that more investors are leaving accumulation and moving towards distribution, resulting in a decline in price. However, it is essential to consider the context in which these metrics are being presented.
The most crucial information lies within the ‘extreme euphoria zone.’ Glassnode data indicates that if Bitcoin’s value were to reach this zone, it would need to surge to approximately $132,000. This significant milestone can be attributed to the recent all-time high of over $108,000.
Despite current selling pressures, some key metrics suggest continued downward momentum may not be on the cards. The extreme euphoria zone serves as a crucial benchmark for determining when the market has reached an unsustainable level. In other words, this threshold signifies that the price increase is too rapid and unsustainable.
Given these insights, it appears that Bitcoin’s value still has room to grow before reaching such an extreme level. If past trends are any indication, a strong rebound in the short term could be on the horizon.
It is essential for investors and traders to note that this article does not constitute investment advice. Readers should conduct their own research and consult with financial advisors before making informed investment decisions.
Source: www.crypto-news-flash.com
