Bitcoin [BTC] has met the high hopes of investors recently with a significant surge in price. However, the leading cryptocurrency has entered a consolidation phase in the last few days as it edges closer to the $100k milestone.
Meanwhile, a key metric related to BTC has taken a bearish turn, signaling a potential pullback.
Increasing ‘GREED’ Among Bitcoin Investors
Bitcoin managed to drive its price up by 8% in the previous week. Notably, CryptoCrypto’s earlier report highlighted how this surge enabled BTC to transform its $96k resistance level into solid support, indicating a probable ascent past $100k.
Consequently, over 53.24 million BTC addresses found themselves in a profitable position, representing a staggering 98% of the total Bitcoin addresses.
Nevertheless, the cryptocurrency has started to stabilize in the past 24 hours, with its daily chart displaying a bearish trend. Currently, Bitcoin is trading at $97.7k. During this time, a well-known crypto analyst, Ali Martrinez, shared a tweet uncovering a significant development.
According to the tweet, long-term holders of BTC are exhibiting signs of increasing greed. Historically, this behavior indicates a potential 8-11 month timeframe before Bitcoin reaches a market peak.
If this prediction holds in this instance, the market top for Bitcoin might be delayed, with the projected timeline suggesting a possible achievement by June or September 2025.
Evaluating BTC’s Metrics
To assess whether the mounting greed in the market will trigger a correction, CryptoCrypto analyzed data from Glassnode. Following a sharp decline, Bitcoin’s NVT ratio has started to climb once again. This suggests an overvaluation of BTC, potentially setting the stage for a price decline.
Nonetheless, the overall market sentiment towards Bitcoin remains positive, as seen in the coin’s accumulation trend score exceeding 0.9.
Typically, a score closer to 1 implies strong buying pressure. Higher buying pressure often leads to sustained price increases. Thus, it remains possible that Bitcoin may withstand the escalating greed in the market.
Moreover, Bitcoin’s Open Interest (OI) remains at elevated levels, indicating a high likelihood of the current price trend persisting. However, an examination of the daily chart shows Bitcoin testing a trendline resistance.
The MACD signal suggests a potential bearish crossover, while the Relative Strength Index (RSI) resides in the overbought territory.
This could prompt a sell-off, potentially impeding Bitcoin from breaking above the resistance level in the short term.