4 sell signals flash on Bitcoin – Are BTC bulls finally running out of gas?

• Bitcoin fell from $110K to $103K, marking a 3.88% weekly loss amid weakening investor sentiment.
• BTC could revisit $101,488 support; if broken, the next key level sits near $98,890, with $92K as a deeper risk.

Bitcoin [BTC] has dropped sharply this past week, sliding from a local top of $110K to $103K. At press time, BTC hovered around $103,707—down 3.88% in seven days.

This sudden shift in Bitcoin’s direction has left analysts talking over the crypto’s trajectory.

One of these analysts is CryptoQuant’s Axel Adler, who has suggested a potential dip to $92k, citing an overheated market.

Four consecutive sell signals

According to Adler, Bitcoin’s Net UTXO Supply Ratio has now flashed four straight sell signals. That’s alongside a visible drop in the UTXO Ratio—a combination that typically signals an overheated market.

Source: CryptoQuant

During this market phase, profit-taking occurs and demand starts to lag supply.

When these two events occur, they indicate that a large share of coins have moved into unrealized profit, thus reducing the incentive to HODL and increasing the potential of profit taking.

Source: CryptoQuant

On-chain data supports Adler’s thesis. Bitcoin’s Net Unrealized Profit plunged to 0.553—its lowest in weeks.

A drop here suggests that most of the holders are currently holding fewer gains than before. Thus, profit margins have dipped, signaling market weakness.

In fact, investors who bought BTC between $104K and $112K are now underwater.

These two scenarios risk market capitulation as investors start panic selling, causing further downside. As such, Adler posited that, at the current point, the market needs a serious reset.

Source: CryptoQuant

The said market reset will mean several things for Bitcoin’s future price movement.

Firstly, the prevailing conditions could see BTC trade sideways between $95k and $105k until the Net UTXO Supply Ratio stabilizes around 0.85 – 0.9.

This will occur, signaling a strong market cooling off after a series of sell signals. Alternatively, a sharper pullback to $92K may play out first, easing the current overheated structure.

In either of these cases, we will see Bitcoin drop below $100k until the market cools down again.

BTC selling pressure builds — Will $101K hold?

On top of weak profit metrics, the Taker Buy-Sell Ratio has remained negative for four straight days.

Source: CryptoQuant

This signals a high selling activity in the market. If the selling pressure continues, we will see BTC drop to $101,488. If this support fails to hold, a dip below $100k is inevitable, with the next support around $98,890.