The post Will Bitcoin Price Pull Back? Historical Patterns Suggest So appeared on BitcoinEthereumNews.com.

After recently breaching the $65,000 mark, Bitcoin’s (BTC) price may have hit a brick wall. While this recent price increase indicates strong bullish momentum, historical patterns suggest that BTC could pull back before the rally continues. This on-chain analysis highlights the indicators affirming this forecast and what investors should expect in the near term. On-Chain Metrics Reveals It’s Time to Take a Break Bitcoin’s price rise to $65,497 is contrary to the expectations investors had at the beginning of September when most predicted it would be a bearish month. However, according to the price Daily Active Addresses (DAA) divergence, BTC could drop before making any attempt to retest $70,000. The price DAA checks whether user engagement increases with a coin’s value. When the price increases alongside active addresses, it is a buy signal, and the cryptocurrency’s value can increase. At press time, Bitcoin’s price DAA had plummeted to -54.89%. This decline indicates that market participants have reduced their interaction with the coin. As such, the recent uptrend might be weak, as this is a sell signal. Read more: How To Get Paid in Bitcoin (BTC): Everything You Need To Know Bitcoin Price DAA Divergence Divergence. Source: Santiment Furthermore, the coin’s performance has impacted holders’ profitability. On September 16, 79.92% of Bitcoin holders were in the money. However, based on the Historical In/Out of Money (HIOM), which compares addresses making money at different price ranges, 91.97% are now in the money. Historically, when the ratio hit such levels, some holders take profits, leading Bitcoin’s price to decrease. For instance, a similar thing happened in July when the holders in profits were about 93%.  A few days later, it declined to 78%. Another scenario took place on August 25 when the percentage was 88.35%, and the decline in Bitcoin price later led to 76.23%. Therefore,…

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Filed under: News - @ September 29, 2024 8:24 pm