The price of Bitcoin (BTC) skyrocketed this week as it surpassed all-time highs (ATH) on two different occasions. While the latest ATH of $70,083.05 marks a monumental milestone, it underlines how Bitcoin is showing an “overheating” sign. according to ideas from the cryptanalysis platform CryptoQuant.
The price of Bitcoin (BTC) skyrocketed this week as it surpassed all-time highs (ATH) on two different occasions. While the latest ATH of $70,083.05 marks a monumental milestone, it underlines how Bitcoin is showing an “overheating” sign. according to ideas from the cryptanalysis platform CryptoQuant.
With investors’ palpable enthusiasm for betting on the coin right now, CryptoQuant warns that a major correction could be coming for the major coin. The analysis platform presented some factors that show that a correction could really be underway for the currency. He highlighted how “the bull-bear market cycle indicator has signaled an overheated bull phase as prices soared above $65,000.”
Now that the price is changing hands at $68,472.28, up 1.7% in 24 hours, the overheated feeling is further aggravated. Bitcoin miners are also seen as being overpaid as profitability jumped to the highest level since December 2023.
Furthermore, CryptoQuant highlighted how traders’ unrealized profit margins have increased to 57%. The analytics platform noted that when the range is this high, it is historically associated with a correction, as traders will eventually take profits.
How Steep Can Bitcoin Fall?
With the alarm bell ringing, the question remains how steep the Bitcoin price can fall with the imminent correction. While CryptoQuant did not provide that information in this current analysis, its founder and CEO Ki Young Ju previously revealed that Bitcoin will likely not return to its BTC ETF spot trading price of around $46,376.
He argued that gold never traded below its ETF listing price of $444, and if precedent were followed, then Bitcoin could not fall below the listing price either. Although Bitcoin price corrected from the all-time high price, it is actively in price discovery mode with the likely unpredictable profit.
As an important optimistic guidance, market experts like Samson Mow project a maximum price of $1 million for the coin in the long term.
