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Bitcoin achieved a brand new all-time high of $ 111,970 on May 22, but was returned to $ 110,700. Analysts noticed mixed signals for overheating the market.
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Financing rates and other metrics indicate a “healthy upward phase”.
The price of Bitcoin (BTC) recorded a brand new all-time high of $ 111,970 on May twenty second. However, the BTC Prize was returned to $ 110,700 on the time of writing.
Despite the correction, there are mixed signals about whether the worth meeting is overheated or whether this can be a healthy withdrawal.
Bitcoin “still not overheated” – analyst
Bitcoin shows no signs that you could have reached recent all -time highs this week. Several analysts point to the fundamentals, which indicates that Bitcoin could proceed to rise.
“Overheating indicators akin to the financing rate and the short-term inflow of capital remain low in comparison with earlier suggestions, and the winning of short-term investors is proscribed,” said Cryptoquant Analyst Crypto Dan in a Quicktake note of May 22.
Crypto Dan identified that Bitcoin's financing rate, an indicator of overheating market, has a rise within the long bets. However, these bets remain “much lower in comparison with earlier suggestions”, which indicates that “overheating the futures market is negligible”.
Bitcoin financing rates and STH SOP. Source: Cryptoquant
An increase in Bitcoin financing rates can sometimes cause concerns about increased Bitcoin volatility and liquidation risks for market participants.
Nevertheless, the financing rates are moderately positive and signal that dealers are optimistic concerning the price of Bitcoin and that buyers are willing to pay sellers a fee for his or her positions.
In the meantime, the short -term holder (SOPR) metric (SOPR) indicator figures show that despite the return of STHS, only just a few profits have made the most recent increase.
This indicator is currently evaluated with 1.02%, which indicates that STHS generates some profits an excessive amount of lower rates.
“In March 2024 there was considerable profit support and an extended correction, however the prize stay is currently much lower than in November 2024,” said the analyst and added that despite the worth in any respect -time heights, the whale is comparatively followed.
Cryptoquant's crypto dan expected Bitcoin to proceed to rise and located:
“Overall, the Bitcoin market continues to be in a healthy upward phase.”
In the meantime, the MVRV Z-Score value of Bitcoin-a Metrik, which compares the market value of BTC with its realized value and adapted volatility-in the last month a remarkable increase.
In the past, all previous Bitcoin Bull runs began with a remarkable increase within the MVRV Z-Score and ended with the metric into the red zone (see diagram below) to signal that Bitcoin is significantly overvalued.
At 2.8, the MVRV Z-Score continues to be significantly below the red zone, which indicates that the market top just isn’t yet at the highest.
Bitcoins RSI occurs in “exhaustion”
The relative strength index of Bitcoin or RSI shows over -tasted conditions in two out of 5 time frames. Bitcoin's RSI is now at 70 within the 12-hour period and 75 within the Daily Chart. Other intervals show almost overold RSI values ​​for the weekly and four-hour time-frame.
Data from TradingView show BTCS RSI at 75, 71, 68 and 66 for every day, 12-hour, weekly and four-hour time-frame. In the meantime, the crypto Fear & Greed Index 78 is 78, which indicates “extreme greed” conditions.
If investors turn out to be too “greedy”, the marketplace for correction is usually overdue. The last time this index was at the peak of the Trump-controlled pump in December 2024, shortly before BTC had dropped from his then high of around $ 108,000 and fell to $ 74,000 in March.
Although these metrics warn market participants of the management of risks, it will be important to notice that the RSI conditions don’t guarantee a trend reversal. The crypto prices are very volatile, and BTC could proceed to assemble, that are heated by increasing the demand from the Spot -ETF and the loosening of trade war stresses.
This article doesn’t contain investment advice or recommendations. Every investment and trade movement is the chance, and readers should perform their very own research results in the event that they make a choice.
