Bitcoin was the best-performing asset among all the top 10 coins on the market this week. It has justified its status as a royal coin once more. But as a king, it also faces many altcoin threats at times.
In this particular case, however, the threat comes from their own investors. And not in the form of a sale, but an actual purchase.
Bitcoin on a roll
Bitcoin has been flying high for more than 10 days. From a decline to $ 42,000 in late September to a surge to $ 55,000, the rebound was quick and strong.
However, it is important for investors to be careful in such a rapidly growing market. In such a case, the chances of a trend reversal usually increase as quickly as the asset.
Right now the total supply in profit is 92.92%, only 2% away from topping the market. In just 12 days, around 16% of the coins that lost in September have already returned to profitability.
So what’s the harm?
For technical reasons, a market high is followed by a price decline. Additionally, the 17% price spike we’ve seen this week, combined with the fact that BTC is still rising, could result in the top of the market coming soon.
Now there have been cases in the past where this has not happened, such as during the all-time high bull run in April. But then again, when Bitcoin hit the same zone of more than 95% in May, we saw a sell-off. Not that the next range will sell off, but we can never be sure what will happen, so it’s better to play it safe.
Therefore, to ensure there is no significant negative impact, Bitcoin investors should hold back their bull market for a while. Because even at the time of going to press, buy orders dominated over sell orders, and that by almost 1.1 billion US dollars (20,000 BTC).
Again, this is an interpretation of on-chain data and in no way investment advice. At the end of the day, it is therefore also recommended that investors also do their own research and invest accordingly.