The crypto market exploded during these past few days, and today things are looking great as well.
At the moment of writing this article, BTC is trading in the green, and the digital asset is priced at $14,392.65.
Bitcoin sell-off on the horizon
Crypto intelligent firm Santiment said that Bitcoin starts to show signals that a sell-off is approaching.
The firm said that BTC is overbought based on three metrics. The first one is called Daily Active Addresses (DAA) vs, Price Divergence, and this compares an asset price movement to the number of unique crypto addresses that are interacting with the particular coin on a daily timeline.
Daily Hodl mentions the second one, MVRV Opportunity/Danger Zones, which relies on average trader returns from various timeframes to determine danger zones or sell points and opportunity zones or buy points.
The online publication mentioned above notes that when average trader returns surge too fast, this metric viewing it as a bearish signal and vice versa.
The third metric that is mentioned is Weighted Social Sentiment, which tracks the sentiment of market participants on Twitter.
All in all, Santiment believes that Bitcoin is getting ready for a massive correction.
“The nine consecutive days of neon red territory on the DAA Divergence model indicates that prices are WAY inflated compared to the growth that unique addresses have seen as the price rose to above $14,000 to end October,” the firm notes.
The company continues and says: “Now, with a decline quickly back to $13,400, this could be just the beginning of the bleed. November 2nd marked the single most bearish divergence in over a year.”
Check out the complete details that the firm provides in their official post.
There have been all kinds of crypto predictions popping up these days, and the other day we just addressed a fresh one.