Bitcoin [BTC] has encountered successive price corrections in recent weeks, impacting its surge. The previous week favored investors as the primary coin witnessed price increases.
However, a recent report has indicated that BTC could experience another round of correction.
Challenges facing the Bitcoin surge
The Bitcoin surge has been encountering challenges lately as it has struggled to surpass the $66k mark. However, the past 24 hours displayed positive signals. According to CoinMarketCap, the coin’s value surged by more than 1.5%. At the current moment, Bitcoin is trading at $63,896.05.
The recent price surge has led to 48.9 million BTC addresses being in profit, representing 91% of the total addresses. Despite this, BTC’s challenges persist, with concerns of a potential end to the Bitcoin surge.
Renowned crypto analyst Ali shared an intriguing insight via a tweet. The tweet suggested that BTC’s price movement was within a channel.
The concerning aspect was that the coin had faced rejection thrice upon nearing the channel’s resistance, indicating that the newfound bullish momentum might not be sustainable. Therefore, CryptoCrypto aimed to conduct further analysis.
What lies ahead for BTC?
Based on our evaluation of Glassnode’s data, a metric indicated a pause in the Bitcoin surge. The observed NVT ratio of the primary coin rose, a sign of overvaluation and signaling a potential price correction.
Furthermore, the coin’s long/short ratio decreased, implying more short positions than long ones in the market, often interpreted as a bearish signal.
Despite this, the bears did not have everything in their favor. Notably, BTC’s exchange reserve showed a decline, as per CryptoQuant. This decrease suggested increasing buying pressure, typically leading to price surges.
To gain a better insight into what to anticipate from the Bitcoin surge, CryptoCrypto analyzed the coin’s daily chart. The technical indicators displayed a notably bearish outlook, with BTC’s MACD showing a bearish trend in the market.
In addition, the coin’s Chaikin Money Flow (CMF) indicated a decline, hinting at a potential price decrease. If realized, this could result in the end of the Bitcoin surge, with the coin likely dropping back to $60k.
Regardless, in the scenario of further price upsurge, BTC might test its resistance at $65.4k once again.