- Bitcoin sell pressure suggests smart money is taking some profits off the table.
BTC on track to conclude September with healthy gains, but can it sustain the momentum in October?
As an analyst with over a decade of experience in the financial markets, I have seen my fair share of bull and bear cycles. The current Bitcoin [BTC] trend is reminiscent of the classic “buy the rumor, sell the news” scenario we often see in the crypto space.
To begin this week, Bitcoin [BTC] displayed a bearish start, following a period of weakened bullish momentum over the weekend. Despite a robust uptrend over the past three weeks, it seems that Bitcoin might be preparing for a possible correction or pullback.
This month, the surge in Bitcoin’s value aligns with an increase in robustly optimistic feelings among investors, commonly referred to as “bullish sentiment.” Interestingly, the overall mood within the investing crowd has swiftly transitioned from fear to eager anticipation in just a few short weeks.
The same was evident in smart money sentiment, but the latter has more impact over directional changes.
The current outlook for Bitcoin (BTC) shows a change in the “smart money” perspective, leaning more towards apprehension. This aligns with the increased selling activity we’ve seen this week.
As for the crowd’s feelings, they were predominantly driven by greed. Examining significant investor activity showed a decrease in Bitcoin inflows to addresses during the past ten days.
There was also a net gain in large holder outflows during the same time.
During the trading session on Sunday, inflows of large Bitcoin holders amounted to approximately 101.15 BTC. Conversely, there were greater outflows totaling 360 BTC, indicating that larger wallets were net sellers. This suggests a shift in sentiment from bullish to bearish among these significant investors.
In addition, there was an increase in selling activity over the past day, but it didn’t reach the level we saw on Friday.
This time around, the rate of liquidations is dropping instead of the upward trend we saw in liquidations last week.
There was also a slight uptick in the number of shorts executed in the last 24 hours. This confirms a surge in bearish sentiment.
Will Bitcoin slip below $60,000?
Bitcoin appears set to end September with gains, managing to hold its ground against renewed selling pressure. Currently, each bitcoin is being traded at approximately $64,073, marking a 8.67% increase compared to its initial value in September.
The cryptocurrency pulled off a 26.64% gain from its lowest price, to its highest price in the last four weeks.
The recent drop in BTC‘s price hasn’t shown strong signs of selling yet, but the market can quickly shift, particularly if there’s a significant outbreak of negative news (Fear, Uncertainty, Doubt – FUD event).
Read Bitcoin’s [BTC] Price Prediction 2024 – 2025
Should a significant wave of selling occur, Bitcoin’s price might discover its next potential support zone ranging from approximately $57,955 to $59,589.
If Bitcoin starts September with a positive momentum, we might observe a breakout of a bullish flag formation. Such an event would reinforce its recovery and possibly lead to new price exploration.
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2024-09-30 23:35