Although Bitcoin has retained investor confidence by holding above critical psychological levels such as $90,000, the asset is facing a notable shift in market sentiment.
CryptoQuant analyst, G aah, recently shared Visions This indicates high selling pressure within the market, which may indicate caution for traders. At the core of this analysis is the delta between buy and sell volumes – a key metric used to measure market behavior.
Bitcoin is facing increasing selling pressure
According to the analyst, the buy-sell ratio measure has reached levels similar to those recorded in July 2024. This represents a period of increased selling activity, which is attributed to profit-taking by investors, market uncertainty, or mass liquidations.
The analyst noted that these developments coincide with a slight increase in volatility and aggressive actions in the futures market. Notably, $430 million of long positions were liquidated within a week, highlighting the huge reaction from sellers.
Gah also revealed that the liquidation of long positions, which reached its fourth highest peak in 2024, had a noticeable impact on Bitcoin price behavior.
The CryptoQuant analyst noted that this volume of liquidations often results in a “redeployment of capital,” leading to temporary reversals or consolidation phases. Historically, liquidation-driven price movements have been pivotal moments, either reinforcing support levels or sparking further selling.
Expectations and precautions for BTC traders
The analyst noted that continued selling pressure could negatively impact Bitcoin’s price trajectory in the short term. As such, constant monitoring of market indicators and risk management is important for investors aiming to deal with these conditions. G aah added:
Defensive strategies (such as reducing leverage and setting stop losses) and constant market monitoring are recommended to avoid overexposure at this time to prevailing selling pressures.
Meanwhile, Bitcoin continued its positive performance. Over the past day, the asset rose 1.6% to reach its price of more than $97,000. Although Bitcoin is still down 2.7% away from its all-time high (ATH) of $99,645, it appears that there is still some form of bullish sentiment in its market.
According to the latest analysis from the famous cryptocurrency analyst known as Javon Marks on This confirmation makes a rise to the $100,000 price mark imminent and the current target is at $116,652.
#Bitcoin The 2-hour chart of (BTC) confirmed a high conviction signal for a full recovery and continue!
A move above $100,000 could be coming, soon
The current target remains at $116,652 pic.twitter.com/7ifdmnuR8d
– Javon
Marx (@JavonTM1) November 28, 2024
Marx (@JavonTM1) Featured image created with DALL-E, chart from TradingView
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