Bitcoin is in the middle of a “pretty huge correction” due to selling pressure from miners, according to CryptoQuant CEO Ki Young Ju
The cryptocurrency is currently down almost five percent over the past 24 hours.
Image by tradingview.com
Miners are in a selling mood
As noted by CryptoQuant CEO Ki Young Ju, the Miners’ Position Index (MPI) recently reached its highest level since July 2019, the month Bitcoin topped out at roughly $13,700 before seeing a huge correction.
Image by @ki_young_juVery high MPI readings suggest that miners are actively taking profits instead of accumulating, thus exerting pressure on the market.
Bitcoin is extremely overbought
Earlier today, NorthmanTrader’s lead market strategist Sven Henrich noticed that the relative strength index (RSI) had reached 93, it highest level ever, on the weekly Bitcoin chart. This suggests that the volatile commodity is extremely overbought.
Image by @NorthmanTraderHowever, earlier this week, veteran trader Peter Brandt claimed that assets typically remain overbought during raging bull markets, which is exactly what happened during Bitcoin’s last bullish cycles.