As Bitcoin (BTC) climbs to $91,799, investors eagerly watch for the next milestone of $100,000. However, on-chain metrics suggest a potential 10-15% correction, which could see the price retrace to $76,000 before resuming its rally.
What Do On-Chain Metrics Indicate?
Key on-chain data points to possible short-term downside risks for Bitcoin. Popular crypto analyst Ali Martinez highlights five crucial indicators that suggest caution.
- The Fear and Greed Index currently stands at 83/100, signaling extreme greed in the market. Martinez notes that this sentiment is particularly prevalent among retail investors, as reflected by the spike in Bitcoin-related searches.
- During the recent rally, investors locked in $5.42 billion in profits, which could create additional selling pressure.
- The TD Sequential Indicator on the daily chart has issued a sell signal. Martinez suggests that a daily close above $91,900 could invalidate this signal and pave the way for Bitcoin to reach $100,000.
Critical Support Levels to Watch
If a correction occurs, the first major support zone lies between $85,800 and $83,250. In the event of a more substantial decline, the next support range is $75,520 to $72,880. These levels could present strategic buying opportunities for investors.
Risk and Opportunity for Investors
While potential corrections pose risks, they also offer opportunities for investors who carefully monitor key support levels and market trends. With Bitcoin nearing a historic milestone, the market remains volatile, requiring strategic decision-making.
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Bitcoin correction, support levels, on-chain metrics, Fear and Greed Index, cryptocurrency trends
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