Bitcoin Faces Potential Downside Pressure Amid Seller Dominance and Key Liquidation Levels

• Bitcoin’s price prediction remains bearish, largely driven by profit-taking after recent highs.

• The Spot Taker CVD suggests that sellers dominate the market, indicating strong sell orders and resulting in price declines.

• Technical analysis indicates possible further declines, projecting prices might drop to $110,750.

Stay updated on Bitcoin’s price trends. Discover insights into market behavior, trading volumes, and key liquidation levels affecting BTC’s performance.

What is Bitcoin’s Current Price Momentum?

Bitcoin’s price is currently at $115,076, reflecting a 0.65% decline over the past day. This downturn mirrors a larger trend of decreasing trader and investor participation, evidenced by a 10% drop in trading volume.

How Does the Spot Taker CVD Signal Market Trends?

The Spot Taker CVD metric signals seller dominance, with its latest data from CryptoQuant showing significant selling pressure in the market. The most recent red bars in the CVD chart align with past price declines, fortifying the bearish market sentiment.

Frequently Asked Questions

What should investors know about Bitcoin’s price prediction?

Investors should prepare for potential ongoing declines, as recent patterns highlight worsening momentum. Experts suggest a dip to $110,750 could occur.

How can Bitcoin’s price volatility affect trading strategies?

Traders need to adapt their strategies during volatile periods, focusing on market indicators like CVD and trading volumes to capitalize on price movements.

Key Takeaways

• Bearish Pressure: Sellers dominate the market, impacting pricing dynamics.
• Liquidation Levels: Current key levels stand at $113,985 (lower) and $117,523 (upper).
• Market Sentiment: Trading volumes are decreasing, reflecting lower investor confidence.

Conclusion

The Bitcoin market is currently experiencing notable bearish momentum, with prices hovering around $115,076. Both the Spot Taker CVD and technical analysis suggest potential further declines. Investors need to remain vigilant and adaptive as market conditions evolve.

Spot Taker CVD hints at sellers’ dominance

This profit-taking and the signs of the price continuing its momentum are further strengthened by the on-chain metric Spot Taker CVD (Cumulative Volume Delta). According to CryptoQuant’s Spot Taker CVD data, sellers have been dominating the market, signaling strong downside pressure.

The latest red bar on the Spot Taker CVD chart suggests strong sell orders, or in other words, significant selling pressure in the market. Based on past performance, this has also been associated with massive price declines.

Source: CryptoQuant

Looking at the current market sentiment, a crypto community shared a post on X noting, “Beware of the next Bitcoin monthly close.” They added that if the Bitcoin monthly chart forms a bearish pinbar candlestick, it could trigger massive downside momentum.

Current Price Momentum

At press time, Bitcoin was at $115,076, down 0.65% in the past 24 hours. The asset has also lost 7.35% over the past five trading sessions and 2.35% in the past week.

This continuous price drop appears to be affecting trader and investor participation, as Bitcoin’s trading volume has declined by 10% compared to the previous day.

Bitcoin Price Action and Technical Analysis

COINOTAG’s technical analysis suggests that Bitcoin’s price prediction for the coming days appears bearish, with the asset poised to continue its downside momentum. On the daily chart, Bitcoin has already formed a bearish divergence and has since lost 7.3% of its value.

In addition, Bitcoin has formed a strong bearish engulfing candlestick pattern, further strengthening the bearish outlook.

Source: TradingView

Based on recent price action and historical patterns, this bearish outlook has turned Bitcoin’s price prediction negative and could result in a 4% dip. If this happens, there is a strong possibility that the asset could drop to $110,750 or even lower.

At present, the technical indicator Supertrend is still green and hovers below the Bitcoin price. This suggests that the asset is in an uptrend, with bulls dominating.

Bitcoin On-Chain Metrics

Given the current market sentiment, investors and long-term holders appear to be accumulating Bitcoin. CoinGlass’s BTC spot inflow/outflow data reveals that $39.95 million worth of BTC has moved out of exchanges, suggesting potential accumulation that could ease selling pressure.

Source: CoinGlass

In addition, major liquidation levels for Bitcoin stand at $113,985 on the lower side and $117,523 on the upper side, where traders are over-leveraged.