After weeks of intense bullishness, Bitcoin may finally be showing signs of a correction with a drop to $ 38,000
Bitcoin, the largest cryptocurrency, fell below $ 38,000 at 17:23 UTC on the Bitstamp exchange after trading at $ 41,450 this morning.
The cryptocurrency has dropped nearly 5% in the past 24 hours.
Miners are in the mood to sell
According observed by the CEO of CryptoQuant, Ki Young Ju, the Miner Position Index (MPI) recently reached its highest level since July 2019, the month that Bitcoin peaked at approximately $ 13,700 before seeing a major correction.
Image by @ki_young_ju
Very high MPI readings suggest that miners are actively making profits rather than accumulating, putting pressure on the market.
Bitcoin is extremely overbought
Earlier today, NorthmanTrader’s chief market strategist, Sven Henrich, noticed that the relative strength index (RSI) reached 93, the highest level of all time, on the weekly Bitcoin chart. This suggests that the volatile commodity is extremely overbought.
Image by @NorthmanTrader
However, earlier this week, veteran trader Peter Brandt stated that assets typically remain overbought during bull markets, which is exactly what happened during Bitcoin’s latest bullish cycles.