BasEx | CryptoQuant Analysis: Risks of Bitcoin Price Correction
CryptoQuant Analysts Point to Risks of Bitcoin Price Correction
11.01.2023
CryptoQuant Analysts Point to Risks of Bitcoin Price Correction

Bitcoin's price recently experienced a slight recovery after its drop below $41,000 in early January. However, experts warn of the possibility of a new correction due to profit-taking risks, as indicated by The Block, citing analysis from CryptoQuant.

Bitcoin's recovery comes amid expectations of SEC approval of spot Bitcoin ETFs in the US, as well as news about a potential reduction in Federal Reserve rates in 2024.

In the last day, according to CoinGecko data, Bitcoin's price has increased by 3.4%, reaching approximately $44,120.

Despite this, fresh analysis from CryptoQuant indicates a high level of unrealized profit among short-term investors, which historically has preceded price corrections, experts note.

Analysts also draw attention to the predominance of sales in perpetual futures markets and the drop in the buyer/seller volume ratio below 1, which could be a sign of a bear market.

Furthermore, an increase in Bitcoin reserves on centralized cryptocurrency exchanges by 28,000 BTC could exert additional pressure on the market.

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