Btc Faces Pullback Risks

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Btc Faces Pullback Risks

Bitcoin (Btc) Faces Pullback Risks Amid Miners' Selling

The decline in Bitcoin (BTC) continues for the 2nd day in a row. However, it still doesn't change the fact that Bitcoin (BTC) is now sitting at record highs near $87600.

Since the 5th of November, Bitcoin (BTC) has gained almost 30% and made a new high near $89940. Although the cryptocurrency has gone down a little bit, it is still very bullish.

Bitcoin (Btc) Rally Looks Overstretched

look at the technical indicators shows that the Bitcoin (BTC) rally is a little overstretched. This means there's a chance that BTC will go through a corrective pullback.

Also, the Miner Position Index shows one of the highest readings for this year. That's a sign that the miners are selling BTC and booking their profits.

In general, a higher MPI reading is a sign that miners are selling their BTC a lot more than usual. Also, extreme readings in the PMI are a sign that the BTC is approaching the top.

The PMI showed a reading of 3.56 on Tuesday which is the highest for 2024. Also, past data showed the index reached 3.87% in November 2023. At that time, Bitcoin (BTC) lost 6% of its value during the next few days.

The RSI on the Bitcoin (BTC) chart also shows a reading of 80, which is quite high. In fact, it is way higher than the 70, which is a sign of extreme overbought conditions. So, there's a good chance that Bitcoin (BTC) will go through a correction in the next few days.

It is safe to say that caution is needed when it comes to adding Bitcoin (BTC) longs to the portfolio. If the decline in Bitcoin (BTC) continues, the next support will be around $78807, followed by the next one at $76K. On the flip side, the next target for the Bitcoin (BTC) is $99887 which is quite a stretch even for the bulls.

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