- Bitcoin’s sales pressure hits a critical point, signaling potential corrections, as geopolitical tensions and market volatility rise.
- After 812 days since 2020’s peak, Bitcoin faces heightened risk with sales pressure at 30%, amidst global economic uncertainty.
- Historical patterns show that Bitcoin corrections often follow spikes in sales pressure, with the 30% mark preceding downturns.
Bitcoin is currently experiencing heightened sales pressure. The latest analysis by analyst Axel, based on the NUPL and SOPR indicators, reveals that the risk of genuine sales pressure is now at a critical point. After 800 days, this pressure has emerged as a real concern.
With problems like tariffs having an impact on stock markets, the robustness of Bitcoin has been put to the test in a volatile global market. But thanks in large part to corporate purchases and the futures market’s neutral sentiment, Bitcoin has shown unexpected strength.
Key Market Dynamics and Sales Pressure Trends
The chart highlights several periods of high sales pressure in Bitcoin’s history. Notably, extreme sales pressure above 30% led to sharp corrections in 2013 and 2017. During these times, Bitcoin’s price experienced drops from its peaks.
In 2013, after reaching over $1,000, sales pressure spiked, pushing the price downward. Similarly, in 2017, the market saw sales pressure rise again, coinciding with Bitcoin’s cycle top of nearly $20,000. These sales pressure surges occurred within 909 days of each other.
Additionally, the gap between the 2017 and 2021 tops spanned 1,124 days. However, the pattern remained consistent, with high sales pressure levels preceding market corrections. Bitcoin saw a steep drop after reaching a record high of $69,000 in 2021.
These market corrections happened after events like the COVID-19 epidemic, the Terra collapse, and the FTX crisis, which increased pressure on sales. Notably, these occurrences had an impact on market behavior even though they did not always raise sales pressure above 30%.
The Current Market Outlook and Potential Risks
In 2023, the selling pressure for Bitcoin once again reached the danger level of 30%. This came following 812 days from the late 2020’s peak. The likelihood of another market downturn is high given the economy and unrest throughout the globe, particularly following Trump’s latest call to the Federal Reserve. Additionally, the rise in the VIX index to above 30 and the drop in the S&P 500 by more than 4% indicate further market weakening.
