Bitcoin reached a new all-time high of $111,970 on May 22, but retracted to approximately $110,700 shortly after. Despite this correction, analysts have mixed views on whether the market is overheated. Some indicators, such as the funding rate and capital inflow, remain low compared to past peaks. CryptoQuant analyst Crypto Dan emphasizes that long bets are cautious compared to previous surges and predicts a continued healthy upward phase for Bitcoin. Likewise, the short-term holder (STH) Spent Output Profit Ratio (SOPR) is showing limited profit-taking among investors. Crypto Dan also highlights Bitcoin's MVRV Z-score, currently at 2.8, indicating that the asset is not significantly overvalued yet. However, Bitcoin's relative strength index (RSI) shows overbought conditions, particularly on the daily chart. Additionally, the Crypto Fear & Greed Index indicates 'extreme greed', a potential warning that a correction may be due. While certain metrics suggest caution, they do not definitively predict a reversal, highlighting the volatility of crypto prices.

Source đź”—