Bitcoin (BTC) Price Heading for a Steep Correction? Five On-Chain Metrics Suggest a Dive Under $80K Is Imminent

Bitcoin investors have been looking forward to $100K levels as the bulls hold BTC above $90,000 on the weekly close. However, the latest on-chain data and metrics indicate Bitcoin price could face a steep correction of 10-15% ahead.

Bitcoin investors have been eyeing $100K levels as the bulls keep BTC above $90,000 at the weekly close. But the latest on-chain data and metrics suggest that the Bitcoin price could be up for a steep correction of 10-15%. This means that the BTC price might slip to $76,000 first before continuing its next rally to $100K, which is also indicated by technical chart patterns.

Bitcoin Price Set For A Steep Correction?

Five on-chain metrics, as noted by popular crypto analyst Ali Martinez, suggest that the Bitcoin price is up for a steep correction, with possibilities of dipping below $80,000. Here’s a closer look at the five metrics that flash warning signs ahead.

1. Bitcoin Fear And Greed Index In “Extreme Greed”

The Bitcoin fear and greed index showcases the market sentiment on a scale of 1-100, with close to 100 being a state of extreme greed and close to 1 being extreme fear. At present, the score is 83/100, indicating a state of extreme greed and warning of caution ahead.

Bitcoin Fear and Greed Index is 83 ~ Extreme Greed

Current price: $89,882 pic.twitter.com/kmA4iEAno8

— Bitcoin Fear and Greed Index (@BitcoinFear) November 18, 2024

“This greed has also been observed among retail investors, with a substantial increase in Google search interest for Bitcoin,” noted analyst Ali Martinez.

2. Profit Booking By Investors After Bitcoin Price Rally

During the recent Bitcoin price rally, investors have realized profits of $5.42 billion, which coincides with a significant increase in the sell-side risk ratio, which now stands at 0.524%. High sell-side risk ratios often indicate an increase in selling pressure, which could lead to higher market volatility. Hence, as profit-taking activity escalates, investors are advised to exercise caution moving forward, according to Martinez.

Courtesy: Ali Charts

3. TD Sequential Indicator Flashes Sell Signal

On the daily BTC chart, the BTC TD sequential indicator, from a technical standpoint, presents a sell signal. This signal will only be invalidated if the Bitcoin price manages to print a daily close above $91,900, which could further propel it to a $100K Bitcoin rally.

The TD Sequential recently presented a sell signal on the #Bitcoin daily chart.

But now it is at risk of invalidation. If $BTC can print a daily close above $91,900, it could rise toward $100,680! pic.twitter.com/oTLyn36yRR

— Ali (@ali_charts) November 16, 2024

4. RSI Shows Bitcoin Price In Overbought Territory

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