Bitcoin (BTC) Price Prediction: Will BTC See Another Correction After Institutional Investor Dumped Millions?

Bitcoin [BTC], despite a brief bout of recovery, is struggling once again after its price slipped below $55,000 on the charts.

Bitcoin [BTC] price showed signs of recovery after falling below $55,000 on the charts, but has entered a downward trend once again. Meanwhile, an institutional investor was seen depositing millions of dollars worth of BTC, fueling selling pressure concerns. So, does this mean that BTC may experience another price correction in the coming days?

are investors selling BTC?

Bitcoin price, like many other cryptocurrencies, also recorded a price drop last week, with the coin price falling almost 8 percent. The bear market price trend continued in the last 24 hours and decreased by more than 2 percent. At the time of writing, BTC was trading at $54,284.69 and a market capitalization of $1 trillion.

While this was happening, a large-scale investor was seen selling a significant amount of BTC. More precisely, Galaxy Digital deposited 1,458 BTC worth $78.5 million into Coinbase Prime. This update from Lookonchain shows that whales are now selling BTC. When whales sell BTC, it means they expect the price of an asset to fall further.

Therefore, it is useful to look at other data sets to see whether the selling pressure on the coin is increasing.

Bitcoin's exchange reserves have increased recently, according to AMBCrypto's analysis of CryptoQuant data. Accordingly, it was seen that the sales pressure on the coin was high.

In addition, at press time both BTC's Coinbase Premium and Funds Premium were in the red – a sign that the selling trend is dominant among US and institutional investors.

Source: CryptoQuant

What do market indicators suggest?

We then evaluated whether the cryptocurrency had experienced another price correction by evaluating its metrics.

According to our analysis of Glassnode data, BTC's NVT ratio has decreased on the charts. In such a situation, it seems that the value of an asset is low and indicates an increase in price.

Source: Glassnode

Also, BTC's aSORP ratio was green, meaning more investors were selling at a loss. It can signal a market bottom in the middle of a bear market.

Also, the dual CDD ratio showed that the last 7-day movement of long-term investors was below average. They have an incentive to keep their coins. This can be interpreted as a bull market signal.

Source: CryptoQuant

So we took a look at the daily chart of the coin to better understand which direction the coin is heading. Our analysis revealed that BTC appears to be testing a support level. The price of the coin has also touched the lower boundary of the Bollinger Bands, which usually leads to price increases.

Finally, both the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) ratios also rose – Again, an indicator of an impending rise.

Source: TradingView

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