Bitcoin continues to be bullish despite its volatile movements. However, analysts have predicted that BTC may have peaked in the near term ahead of the US elections.
According to The Block, analysts at Copper Research said that on-chain metrics and recent price action suggest that the Bitcoin price has reached a short-term peak ahead of the US elections.
In this week’s Copper Opening Bell report, analysts noted that according to the latest data, 98% of wallet addresses are in the money, adding that historically when this ratio has increased significantly (it was 75% recently), it has usually led to selling pressure from investors looking to take profits.
“Historical patterns emerge when large swings occur. At the same time, when we see a significant percentage of BTC addresses turning a profit, this usually leads to selling pressure.
This could indicate that the market and Bitcoin are experiencing a short-term and temporary peak, and selling pressure may continue.”
In addition to the on-chain data, Copper analysts also highlighted that despite the strong inflows into spot Bitcoin ETFs, overall investor interest has remained weak recently. “The markets have reacted to the inflows into ETFs over the last seven days, with prices breaking the $69,000 mark for the first time since July. Still, something seems off in terms of growth. At the beginning of the year, there was a period of intense daily growth in ETFs, but this growth sign has been absent recently,” they said.
*This is not investment advice.