Bitcoin (BTC) Price Correction May Be Brewing as Metrics Flash Bearish Signals

Bitcoin [BTC] successfully crawled above $66k a few days back, sparking excitement in the community. But the trend didn’t last as it again fell below that mark

Bitcoin [BTC] witnessed a price correction in the last 24 hours, pushing it under $66K. At press time, BTC was trading at $65,504.34. In fact, AMBCrypto reported earlier that there were chances of BTC falling victim to a price correction.

In the meantime, Crypto Bullet, a popular crypto analyst, recently posted a tweet revealing a bearish divergence on BTC’s 4-hour chart.

Whenever such a divergence appears, it suggests that the chances of a price correction are high. The tweet mentioned that in case of the bearish trend reversal, then its investors might as well witness BTC once again dropping to $60K.

Source: X

What metrics suggest

AMBCrypto then checked the king coin’s on-chain data to find out whether they also indicated a price correction.

As per our analysis of Santiment’s data, it revealed that after a spike, BTC’s MVRV ratio dropped slightly in the last few days, which can be inferred as a bearish signal.

Market sentiment around the coin also turned bearish, which was evident from the drop in its weighted sentiment.

Source: Santiment

Apart from that, AMBCrypto’s look at Coinglass’ data also revealed a bearish signal. We found that Bitcoin’s long/short ratio dipped. A drop in the metric means that there are more short positions in the market than long positions.

This can be considered a bearish signal as it hints at a rise in bearish sentiment.

Source: Coinglass

However, not everything was in the bears’ favor. For instance, the fear and greed index had a value of 38% at press time. This meant that the market was in a “fear” phase.

Whenever that happens, it suggests that there is a possibility of a price increase. If that turns out to be true, then BTC might not as well drop to $60K again in the near term. Therefore, we checked the coin’s daily chart.

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As per our analysis, the 9-day MA was still above the 21-day MA, signaling a bullish advantage in the market. If the bull rally begins again, then BTC might first target $68K.

If the aforementioned analysis is true, then BTC might fall to $60K again.

Source: TradingView

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