Bitcoin's price correction, following the recent FOMC rate cut, may be nearing its end as key on-chain metrics suggest a potential reversal. Over the past 30 days, Bitcoin has declined by approximately 13%, with a 4% drop in the last week. However, recent data from CryptoQuant indicates that short-term holders are experiencing significant losses, a typical sign of late-stage correction exhaustion.
Additionally, the HODL Waves metric shows a sharp decline in holdings by the one-day to one-week cohort, dropping from 6.2% to 2% of the supply, indicating heavy short-term selling. Exchange Net Position Change data also reveals a significant shift from net inflows to outflows, with a recent flip from +5,103 BTC to -43,292 BTC. This pattern mirrors a previous shift that preceded a rally to Bitcoin's all-time high.
For Bitcoin to confirm a reversal, it needs a daily close above $94,140, a 4% increase from current levels, which would break the symmetrical triangle pattern on the daily chart. A successful breakout could lead to targets of $97,320 and $101,850, while a failure to hold above $90,180 could expose further downside risks.
Bitcoin Correction Nears End as Key Metrics Signal Potential Reversal
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