Copper Predicts Possible Bitcoin Correction Ahead of US Elections

Analysts at Copper have suggested that Bitcoin’s on-chain metrics indicate a potential local peak, especially with the US presidential elections approaching, according to The Block.

Their data reveals that 98% of Bitcoin addresses are currently in the zone of unrealized profits. Historically, when this metric rises significantly, as it recently hit 75%, it often precedes increased selling pressure.

“The market is nearing a temporary peak ahead of the US elections,” the analysts noted.

ETF Outflows and Resistance Levels

The report also highlighted Bitcoin’s inability to break out of its long-term consolidation range despite inflows into ETFs. On October 22, a growth streak ended with $79.1 million withdrawn from funds.

Mid-Term Prospects Remain Positive

At the same time, CryptoQuant points to improved mid-term prospects for Bitcoin. Factors such as increasing hash rate and mining difficulty signal institutional interest in the asset.

Analysts also observed a rise in active addresses over the past 30 days and higher transaction fees, trends that generally support price growth.

“Even if a pullback or consolidation occurs, the positive trend remains highly likely,” the experts added.

Broader Market Context

Previously, QCP Capital predicted that Bitcoin could surpass $70,000 and Ethereum could reach $2,800 in the near future.