Bitcoin is trading at a critical level where previous all-time highs set in January and May have been tested for support. This zone has become an important battlefield for bulls and bears as fear spreads through market emotions. Many investors are becoming brave for further declines and are worried that breaks below these levels could accelerate negative momentum.
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Fresh on-chain data adds weight to these concerns. According to CryptoonChain, insights from the encrypted chart reveal a sharp decline in the 30-day moving average of taker buy/sell rates. This key indicator, which tracks whether an offensive buyer or seller controls the order book, has fallen to the lowest point since May 2018. The low sheer sinew is that even though Bitcoin exceeds its previous record highs, sales pressure is overwhelming.
What makes this development even more prominent is its comparison with November 2021. This is when Bitcoin last hit its all-time high before entering the brutal bear market. At the time, this ratio was particularly high than today, suggesting that the market is even bigger sale Domination. Because sentiment is fragile and pressure is attached, Bitcoin’s ability to hold these critical levels could define the next phase of the cycle.
Bitcoin data reveals strong sales signals
The latest CryptoonChain report is a highlight of data about CryptoQuant data charttracks the 30-day moving average of Bitcoin taker buy/sell rates. This metric is a reliable measure of market balance that indicates whether an offensive buyer or seller controls trading activity. This sudden drop in moving averages now indicates a clear weakening of purchasing pressure. More importantly, the ratio has now fallen below the important 0.98 threshold. This is a level that is widely regarded as a powerful selling signal.
Approaching this line indicates that sales activities are decisively outweighing the demand for purchases. Practically, the market is leaning more towards distribution than accumulation, suggesting that investors are more keen on off-roading than building positions. Historically, when ratios were soaked at such levels, Bitcoin struggled to maintain its upward momentum and often faced a sudden setback.
While Bitcoin prices have recently approached a vital support zone, this imbalance between buyers and sellers has raised questions about current levels of sustainability. The chart reflects an environment in which optimism is vulnerable and the downside is rising.
CryptoonChain explains that a 30-day moving average of taker buy/sell ratios serves as a clear warning. Unless this trend is reversed quickly, Bitcoin is vulnerable to deeper short-term fixes, potentially allowing for longer-term initiation of subphase in cycles.
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The Bulls retain important support after a sharp pullback
Bitcoin is currently trading nearly $111,000 after a volatile retracement from a local high above $123,000 earlier this month. The chart highlights a critical shift in momentum. After repeatedly failing to break through the $124,000 resistance zone, BTC loses steam, rolls, causing waves of sales pressure.
Since then, price action has brought Bitcoin below its 50- and 100-day moving averages. A 200-day moving average of around $114,100 has been tested from below, serving as a resistance instead of support. The flip highlights the challenges bulls face when trying to stabilize the market.
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For now, BTC is finding support in the $110,000-111,000 range. This is a level that coincides with the consolidated zone at the beginning of summer. If buyers can hold this line, regaining these levels is essential to regaining momentum, but relief can bounce from $114,000 to $116,000.
However, if we don’t defend our current support, we will expose Bitcoin to further downside risk, with our next major demand zone coming close to $105,000. Market sentiment remains vulnerable and the inability to clear resistance at $124,000 has shifted focus to support level resilience over the coming weeks.
Dall-E special images, TradingView chart
