Bitcoin (BTC) recently met the expectations of investors by experiencing a significant price increase. However, the leading cryptocurrency has entered a consolidation phase as it moves closer to the $100,000 milestone.
Despite the positive trend, a key metric for BTC has turned bearish, signaling a possible market pullback.
Growing Avarice Among Bitcoin Investors
Last week, BTC saw an 8% price surge, allowing it to establish a new support level above $96,000. This momentum was seen as a precursor for BTC to surpass the $100,000 mark. As a result, nearly 98% of all Bitcoin addresses, totaling 53.24 million addresses, were in a profitable position.
However, in the last 24 hours, BTC’s daily chart indicated a downward trend, with the current price hovering around $97,700. During this period, a well-known crypto analyst, Ali Martrinez, highlighted a significant observation in a tweet.
The tweet pointed out a noticeable uptick in greed among long-term BTC holders. Historically, such behavior has often led to a prolonged period before BTC reaches its market peak, lasting between 8 to 11 months.
If this trend persists, the expected market top for BTC could be delayed. A plausible scenario could see BTC reaching $100,000 only by mid or late 2025.
Evaluating Bitcoin’s Key Metrics
To assess the potential impact of escalating greed on the market, CryptoCrypto analyzed data from Glassnode. Following a sharp decline, Bitcoin’s Network Value to Transactions (NVT) ratio began to climb again, indicating a potential overvaluation and a subsequent price correction.
However, despite these warning signs, overall market sentiment towards BTC remained optimistic, evidenced by the coin’s high accumulation trend score of over 0.9.
A score close to 1 typically suggests strong buying pressure, often leading to sustained price increases. As such, there is still a possibility that BTC could resist the negative impact of growing market greed.
Additionally, Bitcoin’s Open Interest (OI) remained at elevated levels, signaling a continuation of the current price trend. Nevertheless, a closer look at BTC’s daily chart revealed a testing phase against a trendline resistance.
Technical indicators such as the Moving Average Convergence Divergence (MACD) pointed towards a possible bearish crossover, while the Relative Strength Index (RSI) indicated an overbought market condition. These factors could trigger a sell-off, potentially preventing BTC from breaking above the resistance level in the short term.