Jakarta, Pintu News – Bitcoin has recently shown a sharp decline, from a local peak of $110,000 to $103,000, sparking speculation about a potential further drop. Crypto market analysts have been observing indicators that suggest the market may have overheated. With four consecutive sell signals appearing, many are wondering if it is the right time to sell.
This week, Bitcoin (BTC) experienced a significant drop, from $110,000 to $103,000, marking a 3.88% decline in the last seven days. Axel Adler of CryptoQuant suggested that Bitcoin (BTC) could fall to $92,000 due to overheated market conditions. Bitcoin (BTC)’s Net UTXO Supply Ratio has shown four consecutive sell signals, an indication that the market may be entering a downward phase.
According to Adler, the drop in UTXO Ratio and increase in sell signals suggest that many coins have moved into unrealized gains, reducing the incentive to hold (HODL) and increasing the potential for profit-taking. On-chain data supports this thesis, with Bitcoin’s (BTC) Net Unrealized Gains dropping to 0.553, indicating that profit margins for current holders are lower.
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Investors who bought Bitcoin (BTC) between $104,000 and $112,000 are currently in a losing position, which increases the risk of market capitulation. Panic selling could occur if these conditions continue, pushing the price of Bitcoin (BTC) even lower. Adler predicts that the market may need a serious reset to stabilize again.
The market reset in question will have an impact on the future price movement of Bitcoin (BTC). Current conditions may cause Bitcoin (BTC) to trade sideways between $95,000 and $105,000 until the Net UTXO Supply Ratio stabilizes around 0.85 to 0.9. Alternatively, a sharper pullback to $92,000 might occur first, easing the currently overheated market structure.
In addition to weak profit metrics, the Taker Buy-Sell Ratio has remained negative for four consecutive days, signaling high selling activity in the market. If this selling pressure continues, Bitcoin (BTC) price could drop to $101,488.
If this support does not hold, a drop below $100,000 becomes inevitable, with the next support around $98,890. This situation suggests that the market may not be ready for a sustained recovery. Investors and traders should pay attention to these indicators to make informed decisions in managing their portfolios.
With various indicators pointing to a potential further decline, the Bitcoin (BTC) market is currently under close scrutiny. This analysis shows the importance of understanding market signals and being prepared for possible significant price changes. Investors are expected to remain vigilant and make decisions based on current data and in-depth analysis.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.