On-chain indicators and market sentiment suggest that Bitcoin price may face a 10-15% pullback, dropping below $80,000, before rising again to $100,000.
With bulls keeping BTC above $90,000 at weekly close, Bitcoin investors have been anticipating the $100,000 level. However, the latest on-chain data and indicators suggest that Bitcoin price may face a significant pullback of 10-15%. This means the BTC price might first drop to $76,000 before recovering for the next round of rise to $100,000, which also aligns with technical chart patterns.
Is Bitcoin price about to see a significant pullback?
Five on-chain indicators indicate that Bitcoin price may be heading towards a significant pullback, potentially falling below $80,000. Renowned cryptocurrency analyst Ali Martinez mentioned five such indicators that signal future warning signs.
1. Bitcoin Fear and Greed Index shows 'Extreme Greed'
The Bitcoin Fear and Greed Index measures market sentiment on a scale of 1-100, with close to 100 indicating extreme greed and close to 1 indicating extreme fear. Currently, the score is 83/100, suggesting the market is in a state of extreme greed and caution.
Analyst Ali Martinez noted, 'This greed has spread to retail investors, as evidenced by a significant increase in search interest for Bitcoin on Google.'
2. Investors taking profits after Bitcoin price increase
Analyst Martinez also pointed out that investors have realized $5.42 billion in profits during the recent Bitcoin price surge, while the seller risk ratio has also significantly increased, currently reaching 0.524%. An increase in the seller risk ratio typically indicates increased selling pressure, which could lead to heightened market volatility. Therefore, as profit-taking increases, investors should remain cautious, Martinez said.
3. TD Sequential Indicator flashing sell signal
From a technical perspective, the BTC TD Sequential Indicator shows a sell signal on the daily BTC chart. This signal will only be invalidated if the Bitcoin price closes above $91,900 daily, which could further push Bitcoin up to $100,000.
4. RSI shows Bitcoin price is in the overbought zone
The Bitcoin RSI level has now soared above 70, indicating that the BTC price is currently in the overbought zone, while also suggesting a potential price pullback in the future. The RSI indicator helps identify trends and typically fluctuates between 30-90. An RSI below 30 indicates an oversold condition, while above 70 indicates an overbought condition.
5. Bitcoin miners selling
According to CoinGape, Bitcoin miners sold off last week after the recent rise, resulting in a price drop. This could disrupt the upward momentum towards $100,000. Continuous selling has also brought profits amid BTC mining companies reporting lower-than-expected revenue for the last quarter.
The key support levels for BTC are worth noting
Cryptocurrency analyst Ali Martinez identified key support levels for Bitcoin price during price corrections. Martinez pointed out that the first major support range is between $85,800 and $83,250, and the second support range is between $75,520 and $72,880. According to the supply and demand data shared by Martinez, these are key areas for investors to buy BTC.
As of the time of writing, the BTC price is $91,160, with a market cap of $1.8 trillion. The fierce battle around $90,000 between bulls and bears will be interesting.
