A Possible Fall In The Price Of Bitcoin Is Indicated By Several Indicators Of Overheating

Bitcoin's price has been soaring to consecutive all-time highs, yet some indicators hint at potential overselling of BTC.

Source:koinbulteni.com

The cryptocurrency market demonstrates resilience as Bitcoin achieves a fresh all-time peak, reaching $72,800 on March 11. Analysis reveals that BTC surged from an opening of $69,032, marking a 5.7% increase to establish a new yearly high of $72,850 on Monday, March 11. Bitcoin's exceptional performance has raised apprehensions about a potential sell-off prompted by profit-taking at higher levels. Here are three technical and market indicators suggesting a possible BTC price correction in the short term.

A Sell Signal Is Flashed By The TD Sequential Indicator On A 12-Hour Timeframe

Independent analyst Ali observed BTC price trading above $71,700 and cautioned short-term traders about a possible reversal.

Ali shared a chart indicating that the TD Sequential indicator had generated a sell signal on BTC's 12-hour chart.The TD Sequential indicator, an oscillating trend-following overlay chart indicator, predicts a potential short-term trend reversal for BTC. It suggests that the BTC price might decline from its current level, possibly by up to 3.5%, targeting around $70,000.

The Bitcoin Price Exhibits Signs Of Overheating

Bitcoin's price has been steadily increasing in an upward trend since January 23, following the dissipation of the sell-the-news effect surrounding spot Bitcoin ETFs. These newly introduced BTC investment vehicles have attracted significant capital inflows since their launch on January 11, with assets under management reaching $55.3 billion by March 11.

Consequently, overheated signals have emerged in the Bitcoin market. Analysts caution that despite reaching new all-time highs, BTC could soon face substantial corrections.

On March 8, the blockchain analytics firm shared a series of posts on the X social network, highlighting metrics indicating potential overheating. Despite the overheating signals of crypto prices, the BTC future trend still needs to be closely monitored due to increasing demand and the upcoming supply halving.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.