- Bitcoin’s selling pressure suggests that smart money is taking some of the profits off the table.
- BTC is on track to end September with healthy gains, but can it maintain October’s momentum?
Bitcoin [BTC] has started this week bearish after showing some bullish weakness over the weekend. The cryptocurrency has seen a steady rally over the past three weeks but could be on the verge of a retracement.
The Bitcoin rally was in line with the resurgence of strong bullish sentiment this month. In particular, crowd sentiment shifted aggressively from fear to greed in just a few weeks.
The same was clearly visible in the sentiment around smart money, but the latter has more impact on changes in direction.
BTC’s smart money sentiment has recently returned to the side of fear. This is in line with the revival of selling pressure this week.
Meanwhile, the sentiment of the crowd remained on the side of greed. A review of large holder flows showed that Bitcoin address inflows have slowed over the past ten days.
There was also a net gain in the outflow of large owners in the same period.
Source: IntoTheBlock
Inflows from large holders fell to 101.15 BTC during Sunday’s trading session. Outflows from large holders were higher at 360 BTC, confirming that large addresses had net outflows, shifting momentum from bullish to bearish momentum.
There was also a notable spike in sales volume over the past 24 hours, although not as much as what we saw on Friday.
The difference is that the number of liquidations has fallen this time, in contrast to last week’s rising liquidations.
Source: Hyblock Capital
There was also a slight increase in the number of short films performed in the last 24 hours. This confirms a strong increase in bearish sentiment.
Will Bitcoin Dive Below $60,000?
Bitcoin is on track to end September in the green despite the revival of selling pressure. BTC was exchanging hands at $64,073 at the time of writing, representing an increase of 8.67% from September’s opening price.
The cryptocurrency posted a gain of 26.64% from its lowest price to its highest price in the past four weeks.
Source: TradingView
BTC’s latest pullback has not demonstrated robust selling pressure thus far. However, the market is still subject to change, especially in the event of a major FUD event.
Read Bitcoin’s [BTC] Price forecast 2024 – 2025
But in the event of a massive surge in selling pressure, Bitcoin could find its next support level between $57,955 and $59,589.
On the other hand, if Bitcoin starts September on a bullish note, we could witness a bullish flag breakout. This would further validate its recovery and potential price discovery momentum.
