Although Bitcoin has maintained investor confidence by staying above key psychological levels such as $90,000, the asset is still facing a clear shift in market sentiment.

CryptoQuant analyst G aah recently shared a view that suggests that increased selling pressure in the market may indicate that traders need to be cautious. The core of this analysis is the difference between buy volume and sell volume - a key indicator of market behavior.

Bitcoin faces increasing selling pressure

According to analysts, the bid-ask taker ratio indicator has reached a level comparable to July 2024. This marks a period of increased selling activity, caused by investor profit-taking, market uncertainty or large-scale liquidations.

The analyst noted that these developments coincided with rising volatility and aggressive action in the futures market. Notably, $430 million in long positions were liquidated within a week, highlighting the strong reaction of sellers.

G aah also revealed that the liquidation of long positions reached the fourth highest point in 2024, which had a significant impact on Bitcoin’s price action.

CryptoQuant analysts noted that such large-scale liquidations often lead to "capital reallocation," which can lead to temporary reversals or consolidation phases. Historically, these liquidation-driven price movements have also played a key role, either reinforcing support levels or triggering further selling.

Outlook and considerations for BTC traders

Analysts noted that continued selling pressure could have a negative impact on Bitcoin’s price action in the short term. Therefore, it is important for investors to continuously monitor market indicators and manage risks in order to prepare for these situations. G aah added:

It is recommended to adopt defensive strategies (such as reducing leverage and setting stop losses) and continuously monitor the market to avoid overexposure during periods of major selling pressure.

Meanwhile, Bitcoin continues to maintain its positive performance. Over the past day, the asset has gained 1.6% and is trading above $97,000. Although Bitcoin is still 2.7% away from its all-time high (ATH) of $99,645, there still seems to be some bullish sentiment in the market.

According to the latest analysis by renowned cryptocurrency analyst Javon Marks on X, the 2-hour timeframe on the Bitcoin chart has “confirmed” a clear bullish signal. This confirmation makes a move to the $100,000 price mark imminent, with the current target at $116,652.