- BTC was up by more than 5% in the last 24 hours.
- Metrics suggested that investors were selling BTC to earn profits.
Bitcoin [BTC] is on a gaining spree as its price is inching towards an all-time high. However, things might not be as picture-perfect as they look as key indicators flagged a sell signal. Does this mean that BTC investors might have to wait longer to see the coin reach a new ATH?
Bears are gearing up
According to CoinMarketCap, BTC was sitting comfortably above the $66k mark as its value surged by more than 5% in the last 24 hours. At the time of writing, BTC was trading at $66,769.99 with a market capitalization of over $1.3 trillion.
Meanwhile, Ali, a popular crypto analyst, revealed a sell signal. As per the tweet, the TD Sequential indicator showed a sell signal for BTC in the 4-hour chart. Since the 15th of February, every time this indicator suggested selling, the price of BTC dropped by 1.5% to 4.7%.
Apart from that, BTC’s fear and greed index registered a reading of 90, indicating high “greed” in the market. Whenever the metric reaches that level, it hints that the chances of a price correction are high.
Selling pressure is rising
Since these metrics looked bearish, AMBCrypto took a look at CryptoQuant’s data to see whether investors had already started to sell BTC.
As per our analysis, BTC’s net deposits on exchanges are high compared to the 7-day average. Higher deposits can be interpreted as higher selling pressure.
The king of cryptos’ binary CDD was red, meaning that long-term holders’ movements in the last seven days were higher than average. If they were moved for the purpose of selling, it may have a negative impact.
Additionally, its aSORP also turned red. This suggested that more investors were selling at a profit. In the middle of a bull market, it can indicate a market top.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price Prediction 2024-25
To add to the problem, Bitcoin’s Relative Strength Index (RSI) was in the overbought zone, which might exert selling pressure on the coin.
The Chaikin Money Flow (CMF) also registered a downtick, suggesting that the chances of a price correction are high. Nonetheless, the MACD remained in buyers’ favor as it displayed a bullish advantage in the market.
Source: TradigView
