As a seasoned researcher with years of experience navigating the dynamic world of cryptocurrencies, I find myself constantly intrigued by the ever-evolving market sentiment towards Bitcoin. The latest analysis from CryptoQuant’s G a a h has certainly piqued my interest, as it reveals an increased selling pressure that could potentially impact Bitcoin’s short-term trajectory.
Although Bitcoin continues to hold investor trust as it stays above significant psychological thresholds such as $90,000, there’s a discernible change in market opinion towards this asset.
A CryptoQuant expert, Gaah, has recently provided some insights that suggest an increased level of selling activity in the market, potentially causing concern for investors. This analysis mainly focuses on the difference between buy and sell orders being executed – a crucial indicator to understand the market dynamics.
Bitcoin Faces Increased Selling Pressure
Based on the analysis, the balance between buying and selling actions, as indicated by the taker ratio metric, is similar to what was observed in July 2024. This suggests a surge in selling activities, which could be due to profit-taking by investors, market uncertainties, or large-scale liquidations.
The analyst pointed out that these advancements occurred simultaneously with a rise in market turbulence and assertive trades in the futures sector. Intriguingly, around $430 million worth of long positions were sold off in just a week, underscoring the strong response from traders.
In addition, it was disclosed that the significant reduction of long-term Bitcoin holdings (which peaked at nearly the fourth highest level in 2024) exerted a substantial influence over Bitcoin’s market trends.
Liquidation processes frequently cause a shift in wealth (or capital) distribution, which can result in temporary market corrections or periods of consolidation, according to CryptoQuant analysts. Historically, these price fluctuations due to liquidations have been crucial moments, either strengthening resistance levels or sparking additional selling waves.
Outlook and Precautions For BTC Traders
According to the analyst, persistent selling could potentially cause a dip in Bitcoin’s price trend in the near future. Therefore, it’s crucial for investors to keep track of market signals and implement careful risk management strategies to handle such situations effectively.
At present, when there’s strong selling pressure, it’s advisable to employ defensive tactics like lowering your level of investment (reducing leverage) and establishing protective measures (such as stop-losses). Additionally, it would be beneficial to closely watch market trends on a regular basis to minimize potential overexposure.
Currently, Bitcoin is maintaining its upward trend. In the last 24 hours, the asset has grown by approximately 1.6%, pushing its price over $97,000. Despite being about 2.7% short from its record high ($99,645), the market seems to be optimistic, showing signs of bullishness.
Based on a recent analysis by well-respected crypto expert Javon Marks regarding X, Bitcoin’s 2-hour chart has shown a significant bullish signal that is now confirmed. This confirmation strengthens the expectation of a rapid increase towards the $100,000 price point, with the current target being set at approximately $116,652.
The two-hour chart of Bitcoin (BTC) shows a strong indication that it is poised for a complete recuperation and further progression!
Movement above $100,000 can be coming, IMMINENTLY
Current Target Remains @ $116,652
— JAVONMARKS (@JavonTM1) November 28, 2024
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2024-11-30 10:34