Bitcoin drops 9% from its ATH as the market shows signs of being ‘overheated’

Bitcoin (BTC) is trading at $68,319 on March 15, down 4.5% over the last 24 hours as the crypto market displays “overheated” conditions, according to a report by on-chain analytics firm IntoTheBlock. 

Data from Cointelegraph Markets Pro and TradingView shows that the price of BTC turned down from its latest all-time high of $73,835 on March 14, dropping 9% to a new weekly low of $65,565 on March 15.

BTC/USD daily chart. Source: TradingView

The drop in Bitcoin’s price has also triggered a sell-off across the market, with the global crypto market cap dropping 4.1% on the day to rest at $2.59 trillion, according to data from CoinMarketCap.

The second largest cryptocurrency by market capitalization, Ether (ETH), has also dropped 5% in the last 24 hours to $3,708. Other top-cap tokens were also flashing red, with BNB (BNB), XRP (XRP), Cardano’s ADA (ADA) and Dogecoin (DOGE) losing 2.3%, 7.3%, 5.8%, and 8% of their value, respectively, over the same period.

Solana’s SOL (SOL) was the only token among the top 10 cryptocurrencies recording gains, rising 8% over the last 24 hours.

Previously, Cointelegraph warned of a possible correction in the BTC price due to “overheated” conditions, as summarized by X user TOBTC.

Source: TOBTC

Data from market intelligence firm IntoTheBlock corroborates this information, highlighting growing leverage in the crypto market, which presents warning signs of a correction.

Funding rates reach highest levels since 2021

In this week’s On-chain Insights newsletter, IntoTheBlock reveals that the “amount that buyers of Bitcoin perpetual swaps pay those going short is at its highest since October 2021.”

In the chart below, IntoTheBlock analysts note BTC’s “funding rates on Binance and Bybit reached levels of 0.06% and 0.09% yesterday, paid every 8 hours.”

“These fees translate to an annualized cost of 93% and 168% in order to go long Bitcoin,” the report added.

“The abnormally high funding rates are indicative of a market that skews very heavily on the long side.”Bitcoin perpetual swaps funding rate. Source: IntoTheBlock

More data from Coinglass reveals that Bitcoin…

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