Even as Bitcoin maintains investor confidence by staying above critical psychological levels like $90,000, the asset is facing a notable shift in market sentiment.
A CryptoQuant analyst, G aah, recently shared perspectives indicating increased selling pressure within the market, which could indicate caution to traders. At the center of this analysis is the delta between buyer and seller volumes, a key metric used to measure market behavior.
Bitcoin faces increased selling pressure
According to the analyst, the buyers and sellers index metric has reached levels comparable to those recorded in July 2024. This marks a period of increased selling activity, attributed to profit-taking by investors, market uncertainty or massive liquidations.
The analyst noted that these events coincide with an increase in volatility and aggressive actions in the futures market. In particular, $430 million in long positions were liquidated in one week, highlighting the significant reaction from sellers.
Gaah also revealed that the liquidation of long positions, which reached its fourth highest peak in 2024, has had a notable effect on Bitcoin price behavior.
This liquidation volume often results in a “redeployment of capital,” leading to temporary reversals or consolidation phases, the CryptoQuant analyst noted. Historically, these sell-off-driven price movements have also acted as turning points, either reinforcing support levels or triggering fresh sell-offs.
Outlook and Cautions for BTC Traders
The analyst noted that sustained selling pressure could negatively influence Bitcoin’s price trajectory in the short term. As such, continuous monitoring of market indicators and risk management is important for investors seeking to navigate these conditions. Gaah added:
Defensive strategies [such as reducing leverage and setting stop-losses] Continuous market monitoring is recommended to avoid excessive exposure at this time of dominant selling pressure.
Meanwhile, Bitcoin has continued its positive performance. Over the past day, the asset rose by 1.6%, pushing its price above $97,000. Although Bitcoin is still 2.7% away from its all-time high (ATH) of $99,645, it appears there is still a form of bullish sentiment in its market.
According to a recent analysis by renowned crypto analyst known as Javon Marks on This confirmation makes the rally to the price of $100,000 imminent and the current target at $116,652.
#Bitcoin (BTC) 2-hour chart has confirmed a high conviction signal for a full recovery and continuation!
A move above $100,000 is possible IMMINENTLY
Current target remains @$116,652 pic.twitter.com/7ifdmnuR8d
— JAVON
BRANDS (@JavonTM1) November 28, 2024
Featured image created with DALL-E, TradingView chart
