Bitcoin Faces Major Correction Risk Ahead

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Multiple Bitcoin indicators, including a bull-bear sentiment index and realized price metric, point to a possible final BTC shakeout toward $54,000

Bitcoin is showing signs of the bear market’s late stages but could see another leg lower in the coming months, says Joao Wedson, founder and CEO of on-chain analytics platform Alphractal.

BTC may still see one last big drop before recovering, based on one sentiment indicator.

The next likely downside target is near Bitcoin’s realized price at $54,000.

BTC index hints at a drop toward $54,000
In a Tuesday post, Wedson said Bitcoin’s 720-day Tactical Bull-Bear Sentiment Index (TBBI), a long-term indicator that tracks multi-year cycles of fear and greed, had dropped into an extreme bearish zone below 20.

Historically, such readings have reflected “late-stage fear” among traders, a phase that can still produce one final shakeout before Bitcoin begins a more durable recovery.


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