Copper: Bitcoin may peak in the short term, on-chain indicators show signs of overheating

Odaily Planet Daily Report: Digital asset custodian Copper said that the latest price trend of Bitcoin indicates that it may reach a short-term peak, and on-chain indicators show signs of market overheating. As Bitcoin hovers above the $66,000 mark, Copper research analysts have analyzed key indicators, including those reflecting the profitability of addresses, to assess market sentiment ahead of the upcoming U.S. election. The Copper Opening Bell report this week on Bitcoin on-chain data analysis shows that based on the price of Bitcoin's last move, 98% of wallet addresses are now in profit. Historically, when this ratio rises significantly (recently 75%), investors tend to lock in profits, leading to selling pressure. According to Copper analysts, this may indicate that Bitcoin is approaching a short-term peak. Copper analysts said: "When there is significant volatility, patterns emerge, and when we see a fairly large proportion of addresses turn profitable, it often leads to selling pressure, which may indicate that the market is experiencing a temporary top before the U.S. election." The analyst added: "The market has reacted to the ETF inflows over the past seven days, with the price breaking above the $69,000 mark for the first time since July. However, there seems to be something amiss in the growth. At the beginning of this year, the daily growth of ETFs was significant, but this phenomenon has not been observed in the market recently." (The Block)