Bitcoin Falls 4%, Market Shows Early Weakness Signs
Key Takeaways
- Bitcoin (BTC) dropped from USD 110,000 to approximately USD 103,000 within a week – a decline of 3.88%.
- Four consecutive sell signals point to an overheated market environment.
- On-chain data shows shrinking profit margins and increasing willingness to sell.
- A further decline to USD 92,000 is possible if the current support at USD 101,488 fails to hold.
BTC Losing Momentum – Market Shows Early Signs of Weakness
Bitcoin has lost significant value over the past week. The price fell from a local high of USD 110,000 to about USD 103,000. At the time of this analysis, the price stood around USD 103,707. This nearly 4% drop in just a few days has shaken investor confidence.
Some analysts interpret this development as early signs of market overheating. Particularly notable: four consecutive sell signals from the so-called Net UTXO Supply Ratio.
What Is the Net UTXO Supply Ratio?
The Net UTXO Supply Ratio is an on-chain indicator that measures the ratio of unspent transaction outputs (UTXOs). A UTXO is the unspent portion of a Bitcoin transaction – essentially the “change” left over from a transaction.
When this ratio declines, it suggests that many coins are being moved and potentially sold. Combined with multiple sell signals, this points to a phase of increased profit-taking.
Declining Profits, Rising Risks
Another indicator pointing to a potential correction is the Net Unrealized Profit. This recently dropped to 0.553 – a low compared to previous weeks. This shows that many investors are currently holding coins with little or no profit.
Particularly affected are buyers who entered between USD 104,000 and USD 112,000. These investors are currently in the red. This increases the risk of panic selling – a possible trigger for a broader correction.
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Key Support Zones in Focus
The current support zone lies at USD 101,488. If this level fails to hold, the price could fall to USD 98,890 or even as low as USD 92,000. The latter would represent a drop of around 16% from the recent high.
Another warning signal comes from the Taker Buy-Sell Ratio. This metric measures the ratio of buys to sells on exchanges. It has been negative for four consecutive days – an indication of dominant selling activity.
What Does This Mean for You as an Investor?
Caution is advised during phases like this. The combination of technical sell signals and weak on-chain data suggests a potential short-term correction. At the same time, a full trend reversal has not yet been confirmed.
One possible scenario is a sideways movement between USD 95,000 and USD 105,000 until the market stabilizes. However, if selling pressure continues, a drop below USD 100,000 is likely.
Our Assessment
Current data points to an overheated Bitcoin market. Four sell signals in the Net UTXO Supply Ratio, declining unrealized profits, and a negative Taker Buy-Sell Ratio all tell the same story: the market needs to cool down.
For you as an investor, this means: keep a close eye on support zones. A break below the USD 101,488 mark could lead to further losses. At the same time, a potential correction could present opportunities for re-entry at more favourable prices.
Stay informed, analyze the data, and don’t act impulsively. The crypto market remains volatile – but with the right knowledge, you can make well-informed decisions.
Sources
- CryptoQuant
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 105442 |
| 24h % | 0.29 % |
| 7d % | -3.16 % |
| 30d % | 11.52 % |
| 60d % | 26.27 % |
| 1y % | 53.25 % |
| Market Cap | $2,095,547,794,491.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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