Bitcoin faces correction risks amid retail greed and overbought signals.
Miner sell-offs intensify, raising concerns about market cycle tops.
Bitcoin (BTC), which hit an all-time high of $93,265 five days ago, is currently trading at $90,659.66, reflecting a modest 0.29% daily increase. Despite a 12% weekly gain, its trading volume has dipped by 4%, hinting at a slowdown in momentum.
Meanwhile, Renowned crypto analyst Ali has issued a cautionary note, warning of a potential steep correction for Bitcoin. Ali highlighted rising retail investor interest and a significant spike in Google searches for “Bitcoin,” often a harbinger of price declines. Historical data supports this claim, with past surges in search interest coinciding with corrections ranging from 26% to 50%. Additionally, the TD Sequential indicator has presented a sell signal, and RSI data suggests BTC is in overbought territory.
Ali predicts that Bitcoin’s key support levels lie between $85,800–$83,250 and $75,520–$72,880, should a correction materialize. However, a daily close above $91,900 could invalidate the bearish outlook, potentially triggering a rally toward $100,680.
Market Pressure Vs BTC Bulls
Adding to market pressures, Bitcoin miners have sold over 110,000 BTC, worth nearly $10 billion, between 10-17 November, intensifying concerns about a potential price stall. On 12 November alone, miners dumped 25,367 BTC ($2.2 billion), marking the highest single-day sell-off in recent months. Historically, such significant sell-offs have coincided with cycle tops, leading to broader sell pressure from other holders.
BTC Price Chart, source: Sanbase
Meanwhile, MicroStrategy‘s bold Bitcoin strategy continues to make headlines. With 279,240 BTC worth $26 billion, the firm’s Bitcoin reserves now outshine those of industry giants like IBM and Nike. Despite initial skepticism, MicroStrategy’s stock has surged over 2,500% since 2020, aligning with Bitcoin’s remarkable growth.
As Bitcoin hovers around $90,000, the market’s trajectory hinges on overcoming miner sell pressure and sustaining bullish momentum to breach the anticipated $100,000 milestone.
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