3 reasons from the perspective of macro analysis, on-chain analysis, and BTC technical analysis show the possibility that BTC is about to experience strong selling pressure.
#first. Macro perspective: DXY just set a new high of the year in the context of higher-than-expected CPI
According to data released by the US Department of Labor on February 13, CPI in January increased by 0.3% over the previous month, and increased by 3.1% over the same period last year. The published results were all higher than previous predictions of 2.9% (Y/Y). Core CPI also increased 0.4% over the previous month and increased 3.9% over the same period last year, higher than the previous estimate of 3.7% (Y/Y).
#2. On-chain perspective: Many investors are profitable and can take advantage of the current high price situation to sell
UTXO stands for Unspent Transaction Output, which means unspent output transaction. UTXO is generated on each transaction, and by comparing with the field value, it is possible to determine whether the transaction is making a profit or a loss. The following data from CryptoQuant mentioned by SimonaD is the percentage of UTXOs that are profitable.
#3. Technical analysis perspective: Large time frame divergence signal predicts that correction may take place soon
