Bitcoin is currently hovering near crucial support levels, prompting industry experts to express worries about a potential significant market correction. Notable crypto analyst Ali, utilizing the X platform, has pointed out a troubling trend where approximately 5.45 million addresses collectively hold 3.03 million BTC, valued between $64,300 and $70,800.
These 5.45 million addresses have acquired 3.03 million BTC within the price range of $64,300 to $70,800, forming a substantial supply barrier that poses a risk of a sharp correction for Bitcoin. Should the price of BTC continue to decline, these holders might opt to sell to minimize losses, adding to the downward pressure.
The concentration of Bitcoin holdings has created a significant supply barrier, potentially leading to a strong sell-off if larger holders decide to close their positions and take profits.
Additionally, Bitcoin is facing challenges in the market, with a decrease of over 4% last week. The latest data shows that Bitcoin is trading at $64,252, reflecting a 0.7% increase in the past 24 hours. Analysts from CryptoQuant have drawn attention to the “Adjusted Spent Output Profit Ratio” (asopr), which, when combined with a 200-day moving average, helps assess the profit realization behavior of Bitcoin investors.
This indicator typically rises above the 1.00 mark during bullish market phases, indicating that many investors are in profit and may hold their positions anticipating further gains. Conversely, a surge to or above 1.08 often signals a market downturn, based on historical trends. The current asopr levels nearing 1.08 could suggest that Bitcoin is on the verge of a similar retracement, calling for caution among traders and investors.
Tags: BTC
[Image: CryptoQuant]
