Will Bitcoin start 2024 with a price correction?
- BTC was down by more than 1% in the last seven days.
- Market indicators remained bearish on the king coin.
Bitcoin’s [BTC] price has moved sideways in the recent past as it has failed to register gains. While that happened, a new analysis pointed out a metric that might cause trouble for BTC’s value in the days to follow.
These datasets look bearish on Bitcoin
As we enter 2024, BTC’s price action remains sluggish. According to CoinMarketCap, BTC was down by more than 1.7% in the last seven days. Its daily chart also remained red.
At the time of writing, BTC was trading at $42,653.65 with a market capitalization of over $835 billion. Its trading volume also declined during that period, meaning that investors are reluctant to trade the coin.
While this happened, BlitzzTrading, an analyst and author at CryptoQuant, posted an analysis regarding a key BTC metric.
The analysis talked about Bitcoin’s Coinbase Premium, which is an indicator that displays the prices of crypto assets on Coinbase, a cryptocurrency exchange.
The index calculates the prices of specific crypto assets on the Coinbase exchange, usually by comparing them with prices on other exchanges.
Bitcoin’s Coinbase premium started to enter the negative zone in the recent past. Historically, whenever such incidents happened, BTC experienced price corrections.
Therefore, AMBCrypto planned to take a closer look at BTC’s press time state to understand whether a price correction is inevitable.
As per our analysis of CryptoQuant’s data, selling pressure on BTC was high as its exchange reserve was increasing.
Its aSORP was red, meaning that more investors were selling BTC at profits. This typically indicates a market top.
Additionally, derivatives investors continued to buy BTC while its price action remained slow, increasing the chances of a trend continuation.
What to expect from Bitcoin in 2024
Since most metrics looked bearish, AMBCrypto checked BTC’s liquidation levels. We found that after a price pump, BTC witnessed high sell-offs near the $43,800 mark.
The liquidation triggered a price correction, which caused BTC to plummet under $43,000 and made it move sideways over the last seven days.
Read Bitcoin’s [BTC] Price Prediction 2023-24
BTC’s MACD displayed that the bears were leading the market. Its Bollinger Bands revealed that BTC’s price entered a squeeze zone at press time, suggesting increased possibility of an unprecedented price hike in the near future.
Nonetheless, BTC’s Relative Strength Index (RSI) remained bullish as it registered a slight uptick from the neutral mark.