Bitcoin (BTC) Price Prediction: Is a Correction Inevitable?

After touching $68k on the 13th of June, Bitcoin's [BTC] price turned bearish as the coin's weekly and daily charts remained red.

Bitcoin’s [BTC] price remained in the red on the 13th of June after touching $68k earlier in the month.

However, a key indicator showed that BTC’s price had touched and dropped from a critical level, which could trigger a further price correction in the coming days.

Bitcoin’s dark future

According to CoinMarketCap, Bitcoin’s price dropped by nearly 4% in the last seven days. At the time of writing, BTC was trading at $65,243.97 with a market capitalization of over $1.28 trillion.

Despite the recent price drop, data from AMBCrypto showed that the majority of BTC’s supply was still in the green. To be precise, 87% of BTC’s total supply was in profit.

Ali, a popular crypto analyst, posted a tweet highlighting a possible price correction. As per the tweet, BTC’s price dropped below the +0.5σ MVRV pricing band.

This suggests that it may trigger a correction toward the mean pricing band of $54,930. AMBCrypto planned to have a closer look at BTC’s current state to see how likely it is for BTC to drop to $54k.

Is a price correction inevitable?

A look at CryptoQuant’s data showed that BTC’s exchange reserve was dropping, indicating that selling pressure on the coin was relatively weak.

Moreover, the Miners’ Position Index showed that miners were selling fewer holdings compared to its one-year average, suggesting that miners were willing to hold BTC as they expected the coin’s price to rise.

In the derivatives market, the taker buy/sell ratio was green, indicating that buying sentiment was dominant in the derivatives market.

Additionally, BTC’s funding rate was also rising, suggesting that long-position traders were paying short-position traders, which was usually a sign of optimism.

We then checked the king of cryptos’ daily chart to better understand what to expect from it in the near term.

As per our analysis of BTC’s daily chart, its Relative Strength Index (RSI) showed bullish momentum as it went up. A similar increasing trend was also noted on the coin’s Chaikin Money Flow (CMF) chart.

These indicators suggested that investors might soon witness a price increase.

However, the Money Flow Index (MFI) looked bearish as it dropped. The indicator hinted at a continued price decline, which might result in BTC dropping to $54k.