The primary cryptocurrency rose 1.5% in the last 24 hours and currently trades at around $63,500, even as Strategy announced its third BTC sale this year.
However, three important signals point to a potential pullback forming beneath the surface.
The Factors in Question
The renowned analyst Ali Martinez revealed that over 20,000 BTC (worth more than $1.2 billion) have hit exchanges in the past week or so. CryptoQuant’s data shows that the total figure has climbed to around 2.72 million, the highest since the start of July.
This suggests that some investors have abandoned self-custody methods and flocked to centralized platforms, increasing immediate selling pressure, or, as Martinez said:
“When coins move onto trading platforms, it often signals rising sell-side pressure. Keep an eye on this trend.”
It’s worth noting, though, that there might be another reason why investors are sending BTC to exchanges. The recent Coldcart saga has rattled trust in self-custody methods, which could lead to more bitcoin sitting on trading platforms, not necessarily for immediate selling.
Martinez also presented a second bearish signal, noting that BTC miners have sold roughly 1,774 units (worth around $112 million) over the past week. He argued the move signals another wave of profit-taking and something that could negatively impact the asset’s valuation in the short term.
The third factor is Bitcoin’s seasonal performance. The asset has finished August in red territory 9 out of 13 times, adding further uncertainty amid the challenging times.
Final Flushout This Month?
Many analysts believe that the bear market is far from being over, expecting BTC to collapse to multi-year lows in the following weeks. X user Rekt Fencer spotted the formation of a potential final bull trap, which could result in a major crash to around $30,000 later in August.
Not long ago, Martinez presented a rather controversial theory. He claimed that bulls should actually welcome a potential dip to $60K since it could validate a classic inverse head-and-shoulders pattern that might push BTC to as high as $74,000. According to MikybullCrypto, the setup has already been completed:
“Breakout is next. $80K is the magnet target.”
The post 3 Signs Bitcoin (BTC) Could Be Ready for Another Pullback appeared first on CryptoPotato.
Source: https://cryptopotato.com/3-signs-bitcoin-btc-could-be-ready-for-another-pullback/
