Bitcoin Bull Run Hits a Wall: Why Are Analysts Sounding the Alarm?
Over the last two months, there has been significant volatility in the price of Bitcoin, creating a negative trend that has investors alarmed. The leading cryptocurrency has lately run into resistance after a steep increase, and the current trend indicates that more losses could be in store.
The market is still cautious as it is having trouble breaking through important levels. A possible drop to $92,000 is also being talked about a lot.
Bitcoin’s NVT Ratio Hits 1-Year High: Is a Major Correction Looming?
As a sign that the network valuation is significantly outpacing the transaction activity, the Network Value to Transactions (NVT) Ratio for Bitcoin is at its highest point in a year. Such an increase in the NVT ratio has frequently served as a sign of an impending market correction in the past.
This implies that the price of Bitcoin might cool down since it is overpriced. This past weekend saw a minor drop in the NVT ratio, but the overall trend remained unchanged and was mostly ascribed to outside influences.
Massive Liquidations Ahead: $92K Could Trigger Bitcoin Bloodbath
Furthermore, the Bitcoin liquidation map shows that if the price drops to $92,000, there might be lengthy liquidations totaling more than $1.17 billion. For those with long positions, this possible liquidation spike indicates a high risk.
The liquidation map indicates that Bitcoin may experience severe downward pressure if it reaches the $92,000 threshold, even though the positive financing rate has bolstered optimism in some places. This implies that Bitcoin may find it difficult to keep its price above important support levels and that the bearish trend is still ongoing.
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