Bitcoin Price Dip: Sell Signals Flash
Bitcoin (BTC) experienced a significant price drop this week, falling from $110,000 to $103,000, representing a 3.88% weekly loss. This decline comes amidst weakening investor sentiment, raising concerns about the future trajectory of the leading cryptocurrency.
Falling Bitcoin Price: Key Support Levels
Analysts are closely monitoring Bitcoin's price action. Key support levels to watch include $101,488. A break below this level could trigger further decline toward $98,890, with a more significant risk level at $92,000.
Multiple Sell Signals Triggered
CryptoQuant analyst Axel Adler highlights the emergence of four consecutive sell signals in the Net UTXO Supply Ratio, coupled with a drop in the UTXO Ratio. This combination often indicates an overheated market and potential for profit-taking.
The following on-chain data supports this bearish outlook:
- Net Unrealized Profit (NUP) plunged to its lowest level in weeks, suggesting that many holders are now underwater.
- Taker Buy-Sell Ratio has been negative for four consecutive days, reflecting significant selling pressure.
This confluence of negative indicators suggests a market correction may be underway.
Market Reset and Potential Price Movement
According to Adler, the market needs a reset. Two potential scenarios are possible:
- Sideways Trading: Bitcoin may trade sideways between $95,000 and $105,000 until the Net UTXO Supply Ratio stabilizes.
- Sharper Pullback: A more significant drop to $92,000 could occur, relieving the current overheated market conditions.
Both scenarios suggest a potential drop below $100,000 until market conditions cool.
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