Bitcoin Commentator Reveals This Level, Warns of “Major Correction”

A cryptocurrency analyst explained the critical support point in Bitcoin (BTC), warning against the risk of a major correction.

According to CoinGecko data, the Bitcoin (BTC) price, which fell below $60,000 last night, rose above $61,000 again today. However, cryptocurrency analysts think that the risk of a decline in price still remains.

Announced the critical level for Bitcoin

Julio Moreno, research manager of blockchain data platform CryptoQuant, said that $56,000 creates support in Bitcoin according to Metcalfe valuation.



This valuation model is based on Metcalfe's law, which suggests that the value of a network is proportional to the number of users on that network. This is based on the number of daily active addresses in the Bitcoin blockchain. Since the number of active addresses can change frequently, its 365-day moving average is checked.

Warned for major correction

“This indicator showed resistance and top levels in the previous [market] cycle but functioned as support in May,” the CryptoQuant researcher said regarding the Metcalfe model.

Julio Moreno commented, "There may be a major correction below this level."

CryptoQuant researcher also pointed out that investors, whales, exchange-traded funds (ETFs) have started to show less demand for Bitcoin recently.