Analyst Predicts Potential Bitcoin Price Retreat After Surge
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Bitcoin’s recent performance saw a rise of 2.77% on April 17th, coinciding with Iran’s announcement that the Strait of Hormuz would remain commercially accessible during its 10-day ceasefire with the United States. This positive news initially invigorated the market, leading some experts to believe that a pullback could be imminent following the surge.
Analyzing on-chain metrics, MAC_D, an on-chain specialist at CryptoQuant, highlighted indicators that may suggest a forthcoming price reversal for Bitcoin. The analyst noted a decline in the Daily Change in Total Bitcoin Holdings related to Bitcoin ETFs. This metric monitors the daily inflow of Bitcoin into Spot ETFs and serves as a valuable indicator of demand in the spot market. The recent downturn in this metric could imply diminishing demand among investors.
Additionally, the Realized Profit and Loss metric, which tracks the actual gains or losses that investors have secured, reached its peak on April 14th, a level not seen since February. This spike indicates a significant amount of profit-taking among traders, raising concerns about the sustainability of Bitcoin’s recent price increases.
Another factor contributing to this potential retracement is the Bitcoin: Exchange Inflow metric, reflecting the volume of Bitcoin being deposited into the largest exchange wallets. Recently, a substantial influx of Bitcoin into exchanges has been observed. This trend typically signals that investors are preparing to sell, driven by either profit realization or a sense of risk aversion.
The futures market has also shown signs of divergence from the recent bullish trajectory. The Open Interest across exchanges has started to decline from its recent peaks. This indicates that traders are not heavily betting on further price surges, suggesting a lack of speculative enthusiasm that often fuels sustained upward movements.
As of now, Bitcoin’s trading value is hovering around $77,202, reflecting a 3% increase in the last 24 hours and an approximate monthly gain of 8.47%, according to CoinMarketCap data. The current market analysis presents a cautious outlook, acknowledging the recent price rise while also highlighting signals that could lead to a short-term correction.
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