Four sell signals have appeared simultaneously: Has the upward momentum of Bitcoin come to an end?

Bitcoin (BTC) has just gone through a tumultuous week, plummeting sharply from a local peak of $110,000 down to $103,000. As of the time of writing, this coin is trading around $103,707, corresponding to a fall of 3.88% over the past seven days.

This unexpected development quickly became the focal point of debate among investors and analysts, as the biggest question now is: has the market entered a phase of deep correction?

Among the notable viewpoints, Axel Adler – an expert from the on-chain analysis platform CryptoQuant – issued a warning that Bitcoin could continue to slide towards the price range of $92,000. He believes that the increasing selling pressure is a sign that the market is entering a "overheated" state.

Four consecutive sell signals

According to expert Adler, Bitcoin's Net UTXO Supply Ratio has just sent out four consecutive sell signals – a sign that cannot be overlooked. At the same time, the UTXO Ratio is also plummeting sharply. When these two indicators weaken simultaneously, the market is often considered to be in an overheated state.

Source: CryptoQuantIn this context, the profit-taking activity of investors has increased significantly, while demand shows signs of weakening compared to the existing supply.

The simultaneity of these two factors indicates that a large amount of BTC is in a state of unrealized profit (. This not only reduces the motivation for long-term holding )HODL( but also encourages a stronger trend towards realizing profits.

![])https://img.gateio.im/social/moments-7103d0eefdc2d665d822cea86c3386de(Source: CryptoQuantOn-chain data continues to reinforce Adler's view. Specifically, the Net Unrealized Profit of Bitcoin has decreased to 0.553 – the lowest level in recent weeks.

This decline indicates that the profit margins of the majority of investors are being squeezed. This is a warning signal that the growth momentum in the market is clearly weakening.

In fact, investors who bought BTC in the price range of $104,000 to $112,000 have currently fallen into a state of loss.

Both scenarios could lead to a mass capitulation )market capitulation(, where investors panic sell, resulting in a deeper decline. According to Adler, in the current situation, the market needs a strong "reset."

![])https://img.gateio.im/social/moments-8b2a576601867b8ac57159d22ce70aa7(Source: CryptoQuant## The market needs a strong correction

This "reestablishment" is opening up many potential scenarios for the price trend of Bitcoin in the near future.

In the short term, given the current market conditions, BTC is likely to fluctuate in the accumulation zone between $95,000 and $105,000, until the Net UTXO Supply Ratio stabilizes around 0.85 – 0.9. This will be a sign that the selling pressure has somewhat cooled down, after a strong chain of distribution signals.

However, it cannot be ruled out that BTC may correct deeper, retreating to the $92,000 area to completely relieve the current overbought condition.

Regardless of the scenario, one thing to note is that the price of Bitcoin still risks falling below the $100,000 mark before the market finds a sustainable balance.

Selling pressure increases — Can the level of $101,000 hold?

![])https://img.gateio.im/social/moments-9a6bac676b83aa8ffa8bf775b6c5718f(Source: CryptoQuantOne noteworthy point is that the Taker Buy-Sell Ratio) has remained in negative territory for four consecutive days, amid bleak profit indicators. This clearly reflects the pessimistic sentiment in the market, as selling pressure is clearly dominant.

If this negative trend continues, BTC is likely to retreat to the support level of $101,488. And if this price range cannot hold, it is hard to avoid Bitcoin slipping below the psychological threshold of $100,000. In that scenario, the next support area is identified around the level of $98,890.

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