Bitcoin (BTC) has recently surpassed the $66,000 mark, providing a wave of optimism among cryptocurrency investors. However, signs of a potential downturn loom as a multi-year bearish pattern has emerged on Bitcoin’s chart.

Strong Gains but Caution Required

As Bitcoin’s price rallied past the crucial $66,000 threshold, data revealed that over 49 million BTC addresses are now in profit, representing more than 92% of all Bitcoin addresses. This bullish trend has raised hopes for a sustained upward route. However, analysts are advising caution, as a bearish head and shoulders pattern, identified by crypto analyst Ash Crypto, suggests that a significant price correction could be on the horizon.

Signs of Selling Pressure Intensifying

Current market indicators show increased selling pressure. Analysis from CryptoQuant highlights a spike in Bitcoin’s net deposits on exchanges, which typically signals heightened selling activity. Coupled with the aSORP metric turning red—indicating that more investors are taking profits—there are concerns that the market may be nearing a peak. Additionally, the NULP metric also appears bearish, further supporting the notion of an impending price correction.

Hope Remains for a Continued Rally

Despite the cautionary signals, there are still optimistic indicators for Bitcoin. The NVT ratio, a measure of Bitcoin’s value relative to transaction volume, has been declining, suggesting that the asset may be undervalued. This could pave the way for a price increase in the near future. Analysts speculate that if the current bullish trend persists, Bitcoin could potentially reach its all-time high once again.

Bitcoin’s recent performance has left many investors in profit, the market’s mixed signals indicate that a correction could occur, with forecasts suggesting a possible drop to $54,000 if selling pressure continues to rise. Investors are advised to remain observant in this volatile market.

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