According to researchers at Santiment, Bitcoin has been in an "Overbought territory." Merely two hours after the report came out, BTC dropped 4 percent.
As Bitcoin declined from $13,750 to $13,200, Ethereum and other major cryptocurrencies also plunged.
Bitcoin at risk of a short-term correction, but it's not all negative.
Bitcoin is showing signs of a short-term price drop for the first time since its rally in September.
The daily candle of BTC dropped below the 10-day moving average, which has not happened since early October.
As researchers at Santiment noted, the rally of Bitcoin was quickly becoming overcrowded.
On October 27, Glassnode analysts said that the number of Bitcoin millionaires exceeded 20,000.
The high percentage of Bitcoin addresses being in profit means the number of potential investors that could sell BTC has risen.
Bitcoin correcting after a two-month-long rally is positive for two reasons.
Technically, Bitcoin consolidating above the $13,200 to $13,300 support range strengthens the base of the rally.
Bitcoin in "overbought territory" says researchers as BTC suddenly corrects
Published on Nov 2, 2020
by Cryptoslate | Published on Coinage
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