Bitcoin Overheating Signals and Correction Risks That Shouldn't Be Overlooked

In the midst of Bitcoin's current bullish trend, certain metrics have emerged, suggesting the market might be entering an overheated state. Here's what you need to know ⬇️

1️⃣ Market Cycle Analysis: The Bull-Bear Market Cycle Indicator shows the market has entered an Overheated-Bull phase, following the surge in prices beyond the $65K mark. This phase often precedes market corrections.

2️⃣ Miner Profitability: The profitability for miners has reached unprecedented levels, the highest since December 2023. While beneficial for miners, historically, such peaks have preceded market adjustments.

3️⃣ Profit Margins Among Traders: Currently, unrealized profit margins for traders stand at 57%. This figure is significant, as similar levels have historically been indicators of forthcoming market corrections.

4️⃣ Short-term Holder Activity: There's a noticeable trend of short-term holders liquidating their holdings at profit margins not seen since February 2021. This behavior could introduce additional selling pressure into the market.

Source: CryptoQuants

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