Bitcoin price opened the week with a sharp sell-off, but on-chain and technical data points to a much-needed cooling-off period.
Bitcoin (BTC) price is down 5% over the last 24 hours to trade at $41,645 on Dec. 11. Despite the sharp price correction, technical indicators and on-chain data show that Bitcoin still displays strength as bulls strive to push the price back above $44,000.
Bitcoin dropped as much as 7.2% falling to $40,300 on Coinbase, triggering a conversation among analysts. Julio Moreno, head of research at on-chain analytics firm Cryptoquant said that the price of the flagship cryptocurrency was “overheating after the recent rally above” the $40,000 psychological level.
More data from on-chain data analysis firm Lookintobitcoin highlighted exhaustion among bulls. According to its December 2023 report, the Bitcoin price has reached its golden ratio multiplier near-term target, highlighted by the Crosby Ratio, which shows Bitcoin’s near-term price at “over-extended levels” resulting in the need to correct, or at least slow down.
