The price of Bitcoin rallied to $23,199 on Saturday, following a 33% increase over the past two weeks. While this rally saw Bitcoin reach its highest level since August 2022, on-chain analytics firm CryptoQuant believes the asset is at a major crossroads.
As the market awaits the decision of bulls and bears on the next move, CryptoQuant advises traders to wait patiently for the final outcome.
“We must wait and see whether the bulls will emerge victorious or if the bears will prevail,” said CryptoQuant.
From a technical perspective, Bitcoin broke out of a multi-week bear market due to significant accumulation by whale traders. However, CryptoQuant noted that increased sell pressure from Bitcoin miners could increase the likelihood of bears winning in the short-term.
The price of Bitcoin reached $23,199 on Saturday, following a 33% increase over the past two weeks. While this rally saw Bitcoin reach its highest level since August 2022, on-chain analytics firm CryptoQuant believes the asset is at a major crossroads.
Short-term investors are seeking to take profit at current levels, which could increase the overall Bitcoin sell pressure. Additionally, centralized crypto exchanges, despite the relief rally in the past three weeks, are taking caution by reducing Bitcoin reserves. Furthermore, investigations following the FTX, Genesis Trading, and Alameda collapse could cause negative market sentiments.
One notable event, Bitcoin miner 1Thash sent almost its entire bag of Bitcoins to the Binance crypto exchange in a series of transactions earlier last week. Conventionally, increased sell pressure from Bitcoin miners is quickly followed by a bear market.
As such, CryptoQuant has advised Bitcoin traders to advance with caution as the next move may be violent and lead to high liquidations. According to aggregate data provided by Coinglass, over $31 million has been liquidated in the past 24 hours in the Bitcoin market.
With Bitcoin’s 24-hour trading volume down over 15% to $24,186,856,836 on Monday, a possible price correction is looming in the coming days.