CryptoQuant Analyst: “This Indicator Gives Near-Term Correction Warning for Bitcoin!”

Although Bitcoin rose above $48,000 after the Spot Bitcoin ETF approval, it could not hold there and fell to $41,000.

At this point, while investors were wondering whether the sell news about the ETF approval was over and when BTC would rise again, another correction warning came from the CryptoQuant analyst.

According to the hourly Average Stock Entry analysis, there is a sell signal in the near term, the analyst said.

“My latest analysis shows that when the Average Stock Entry level is above 7, it is a warning of selling pressure likely to come within a few hours to a few days.

I tested this by going back a few years and my analysis turned out to be pretty accurate.

Accordingly, a reading above 7 signals another sell signal soon, indicating that another sell pressure may come this week. “

The analyst pointed out that this measurement also gave a sales signal on the day the Spot ETF was approved, and said that there was selling pressure and a decline the day after the ETF approval.

Warning investors about a near-term correction in Bitcoin, the analyst lastly said, “I think Bitcoin has experienced a huge rise until the spot BTC ETF approval, and therefore it is time for a bull market correction.”

Another CryptoQuant analyst also stated that the bullish sentiment of institutional investors has decreased and the Coinbase premium index has shifted to the negative zone, and evaluated this situation as a correction signal.

“The shift of the Coinbase premium index into negative territory indicates that bullish sentiment has diminished among institutional investors compared to retail investors.

This metric is of significant importance, especially in the wake of recent ETF approvals.

If this indicator does not return to positive territory soon, this could signal that many institutions are waiting for a “news sell” correction before starting to accumulate BTC. “

*This is not investment advice.