Analyzing Bitcoin’s Recent Price Correction: A Technical Breakdown
Bitcoin’s Correction Explained

Bitcoin has recently experienced a price correction, falling from a high of $69,500 to a low of $66,800. This comes after a short-lived rally, with signals suggesting the surge was unsustainable due to various technical indicators.
NVT Golden Cross Indicator Signals Overvaluation
According to on-chain data, Bitcoin’s NVT (Network Value to Transactions) Golden Cross has entered the “overheated” zone. This metric indicates that Bitcoin’s price has been driven higher than the real value supported by network activity. Such overbought conditions often lead to price corrections, as the market adjusts to real demand and blockchain fundamentals.
Stock-to-Flow and Negative DAA Divergence
The Stock-to-Flow (S2F) ratio, which measures the supply of Bitcoin, has also decreased, signaling increased availability of BTC. When supply outpaces demand, bearish conditions arise, contributing to price drops. Additionally, the divergence between Bitcoin’s price and Daily Active Addresses (DAA) has remained negative, indicating the rally was largely speculative and not backed by substantial network growth.
Market Outlook
In summary, while Bitcoin’s rally to $69,500 drew attention, the technical fundamentals reveal a market correction was necessary. This realignment with on-chain data and supply-demand factors positions Bitcoin for a potential rebound, once the market stabilizes and real demand resumes.
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