As Bitcoin oscillates near critical support levels, industry analysts voice concerns about the potential for a significant market correction. Prominent crypto analyst Ali, utilizing the platform X, has highlighted a worrying trend where approximately 5.45 million addresses hold 3.03 million BTC, priced between $64,300 and $70,800.
Around 5.45 million addresses acquired 3.03 million $BTC between $64,300 and $70,800. This forms a significant supply barrier, risking a steep correction for #Bitcoin. If #BTC's price continues to drop, these holders may sell to limit losses, intensifying downward pressure. pic.twitter.com/cBkXXjxHUD
— Ali (@ali_charts) June 22, 2024
The concentration of Bitcoin holdings creates a substantial supply barrier, which could potentially lead to an aggressive sell-off if any of the larger holders decide that they want to close their positions and take some profits.
Market Indicators Suggest Caution
On top of that, Bitcoin is in rough waters… After more than a 4% drop during last week, latest data show *BTC* is trading at $64,252 which represents an increase of 0.7% in the last 24 hours.
Analysts from CryptoQuant have brought attention to the “Adjusted Spent Output Profit Ratio” (asopr) which, when paired with a 200-day moving average, helps to gauge the profit realization behavior of Bitcoin investors.
Source: CryptoQuant
This indicator typically surges above the 1.00 mark during bullish market phases, suggesting that many investors are in profit and may continue to hold their positions expecting further gains.
Conversely, a rise to or beyond 1.08 often presages a market downturn, as historical patterns indicate. Current asopr levels nearing 1.08 could suggest that Bitcoin is teetering on the edge of a similar retracement, necessitating vigilance among traders and investors.