According to analysts at cryptocurrency analysis firm CryptoQuant, a correction in Bitcoin price may be imminent. This follows significant volatility in Bitcoin price, which recently reached $57,000.
According to CryptoQuant, short-term unrealized gains for investors have reached 24% based on today's market price. Notably, half of these gains belong to Bitcoin holders with a holding period of less than one month. Significant price appreciation and considerable profits among existing market participants could trigger a correction, according to analysts.
While market sentiment is optimistic in anticipation of the upcoming halving, the risk in the market combined with significant gains from new investors could be a compelling reason to take profits, according to CryptoQuant.
Comments may be that the market will correct in the near future, but this remains uncertain given the bullish trend and uncertain possibilities, according to analysts. CryptoQuant emphasizes that if prices continue to rise, the market risk margin will increase due to buried profits in the pockets of short-term investors.
*This is not investment advice.