Bitcoin bears threaten to end the recent bullish streak as smart money starts taking profits. Will bullish sentiment prevail?
- Bitcoin sell pressure suggests smart money is taking some profits off the table. BTC on track to conclude September with healthy gains, but can it sustain the momentum in October?
Bitcoin [BTC] has kicked off this week on a bearish tone after showing some bullish weakness during the weekend. The cryptocurrency maintained a steady rally for the last 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. Crowd sentiment in particular shifted aggressively from fear to greed in a matter of weeks.
The same was evident in smart money sentiment, but the latter has more impact over directional changes.
BTC’s smart money sentiment recently shifted back towards the side of fear. This is in line with the resurgence of sell pressure this week.
Meanwhile, the crowd sentiment remained on the side of greed. An assessment of large holder flows revealed a decline in Bitcoin address inflows in the last 10 days.
There was also a net gain in large holder outflows during the same time.
Source: IntoTheBlock
Large holder inflows were down to 101.15 BTC during Sunday’s trading session. Large holder outflows were higher at 360 BTC, confirming that large addresses had net outflows, thus shifting from bullish to bearish momentum.
There was also a notable spike in sell volume in the last 24 hours, although not as much as what we observed on Friday.
The difference is that this time the level of liquidations has been declining as opposed to the rising liquidations last week.
Source: Hyblock Capital
There was also a slight uptick in the number of shorts executed in the last 24 hours. This confirms a surge in bearish sentiment.
Will Bitcoin slip below $60,000?
Bitcoin is on track to close September in the green despite the resurgence of sell pressure. BTC exchanged hands at $64,073 at press time, which represents an 8.67% upside from its September opening price.
The cryptocurrency pulled off a 26.64% gain from its lowest price, to its highest price in the last four weeks.
Source: TradingView
BTC’s latest pullback has so far not demonstrated robust sell pressure. However, the market is still subject to change, especially in the event of a major FUD event.
But in the event of a massive surge in sell pressure, Bitcoin may find its next support level between $57,955 and $59,589.
On the other hand, if Bitcoin kicks off September on a bullish tone, we could witness a bullish flag breakout. This would further validate its recovery and potential push into price discovery.
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