Analysts warn of the dangers of a Bitcoin correction

Chain researcher and CryptoQuant author Axel Adler Jr. note that 94% of the Bitcoin supply is in the black. According to his comments, most coins were bought at the $55,000 mark.

94% of Bitcoin supply is in profit, with most coins bought at the $55K level. pic.twitter.com/ccHeFIJJa3

— Axel 💎🙌 Adler Jr (@AxelAdlerJr) October 22, 2024

Expert Checkmate noticed a “change in sentiment” in the market. For example, he cited local purchases of digital gold by short-term investors a few months ago.

Over 94% of the #Bitcoin supply is now back in profit.

In particular, short-term holders have been rewarded for buying the copsolidation dip in recent months, with almost everything back in the money.

This reinforces Buy-the-Dip behavior, and is an emotional tailwind pic.twitter.com/97yw1Dqp9I

— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) October 21, 2024

Historically, high levels of unrealized profits have been the catalyst for significant corrections in the price of the first digital currency.

For example, when the metric reached similar levels at the end of September, by the beginning of the next month Bitcoin “slipped” from $65,800 to $60,000 (-8.7%) – many market participants registered short-term profits time

The price of Bitcoin showed similar dynamics against the background of chain-like indicators in previous cycles – for example, in the bull markets of 2017 and 2021.

Against $69,000

October 21 Bitcoin price reached for 69 000 US dollarsbut then changed to about $67,000.

“BTC is currently facing resistance in the form of a major liquidity zone,” was noted a trader from Japan under the name Jusko Trader.

In his view, the latest price pullback was “healthy” and represents something of a reset before growth begins.

Greece.live monitors was noted A significant increase in funding rates on the Bitfinex exchange – up to 30% annually. In their view, this is a strong bullish signal – a sign of more positions with big players.

Previously options traders set Bitcoin has risen above $80,000.

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