💡 Bitcoin is struggling to maintain support at $95,000 amid overvaluation concerns. A breakdown could lead to further losses.
Bitcoin Faces a Potential Correction
Bitcoin has held strong at $95,000, but this support level may not last. The cryptocurrency is showing signs of overvaluation, which could trigger a price drop. If support fails, Bitcoin could fall to $92,000, sparking investor concerns.
Why Bitcoin’s Valuation Looks Risky
The Network Value to Transactions (NVT) ratio is at a five-month high, last seen in September 2024. This metric compares Bitcoin’s network value to transaction volume. A high NVT ratio means Bitcoin’s price may be outpacing its actual network activity—historically a sign of overvaluation and potential corrections.
As the NVT ratio rises, the gap between price and transaction activity grows, increasing the risk of a market correction.
Market Sentiment Signals Possible Pullback
The Fear and Greed Index is approaching the Greed zone, signaling that investors are becoming overly optimistic. When this happens, Bitcoin often faces pullbacks as traders take profits.
If sentiment continues shifting toward Greed, Bitcoin could struggle to sustain its current price levels. The next few days will be crucial in determining the cryptocurrency’s direction.
BTC Price Prediction: Will Support Hold?
Bitcoin is currently trading at $96,185, just above its critical support level of $95,869. If it stays above this level, Bitcoin could stabilize and avoid further decline.
However, if overvaluation concerns and market sentiment shifts weigh on Bitcoin, it could break below $95,869, leading to:
📉 $93,625 as the next key support
📉 $92,005 as a worst-case scenario
On the flip side, if Bitcoin holds steady, it could rebound to $98,212. A breakout above this resistance could invalidate the bearish outlook and restore bullish momentum.
