Bitcoin's Surge Grinds Halt Below $70K as Metrics Point to Impending Dip

Bitcoin's value has faced a slight decline, dipping below the $70k mark. Analysts predict the possibility of a further price correction, citing metrics such as high liquidity near $72k, support at $69k, and an increasing network-to-value ratio. The sideways movement of the RSI and CMF indicators, observed in the daily chart, further suggests a bearish outlook for Bitcoin in the near term.

Bitcoin's Ascent Stalls Under $70,000 Mark, Metrics Suggest Price Correction

October 22, 2021

After hovering near the $70,000 mark for several days, Bitcoin's (BTC) price has fallen slightly below this significant level, raising concerns among analysts that a further price correction may be imminent.

Current Market Conditions

At the time of writing, BTC is trading at $69,973.35, having declined marginally in the past 24 hours. Despite this recent dip, the vast majority (over 97%) of BTC holders remain in profit, according to data from CoinMarketCap. Furthermore, IntoTheBlock's analysis indicates that the market for BTC is still bullish.

Analyst Perspectives

Prominent crypto analyst Michael van de Poppe has cautioned investors not to expect an immediate surge to the $100,000 mark, citing the historical four-year cycle of Bitcoin's price movements. He believes that BTC is likely to consolidate within a range of $60,000 to its all-time high for the time being.

Technical Analysis

An analysis of BTC's metrics by AMBCrypto reveals a potential scenario for the upcoming week. Hyblock Capital's data suggests that northward liquidation for BTC will increase sharply at $72,000. This high liquidity level could act as a strong resistance point, preventing BTC from moving higher. Conversely, support for BTC lies near $69,000. If this support fails to hold, the price could potentially fall as low as $63,000.

Findings from Glassnode's analysis further support the likelihood of a price correction. The Network-to-Value (NVT) ratio for BTC has increased in recent days, indicating that the asset may be overvalued and prone to a price decline.

Daily Chart Indicators

Technical indicators on BTC's daily chart also provide bearish signals. The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) indicators have both trended sideways, suggesting a lack of momentum in either direction. These indicators, combined with other metrics, paint a somewhat pessimistic picture for the near future.

Conclusion

While Bitcoin's price has faced resistance at the $70,000 mark, it is important to approach any analysis with caution. The cryptocurrency market is notoriously volatile, and unexpected events can occur at any time. However, the current metrics and analyst perspectives suggest that a price correction for BTC is a distinct possibility in the coming week. Investors are advised to monitor the market closely and adjust their strategies accordingly.