Bitcoin’s Sales Pressure Rises: Is a Correction Looming?

Bitcoin is facing critical sales pressure, signaling potential corrections as geopolitical tensions and market volatility increase. After 812 days since the peak of 2020, Bitcoin has experienced heightened risk with sales pressure at 30%, amidst global economic uncertainty. 800 days have passed without significant correction, prompting concern about a downturn based on historical patterns. Bitcoin’s recent surge is fueled by increasing DeFi applications and institutional investments, according to analyst Axel, who analyzed the NUPL and SOPR indicators. However, this strength has been put to the test in a volatile global market, impacted by factors like tariffs and their effect on stock markets. 30% sales pressure poses a significant risk for Bitcoin. Historical data shows that past corrections often follow spikes in sales pressure, with the 30% mark preceding downturns. 2013 and 2017 saw sharp corrections after periods of extreme sales pressure exceeding 30%. The chart highlights these historical events, demonstrating a clear correlation between high sales pressure and market downturns. These periods occurred after major disruptions like the COVID-19 epidemic, the Terra collapse, and FTX crisis, which added to pressure on sales. 2021 saw Bitcoin’s price drop sharply following its record high of $69,000. Currently, Bitcoin is experiencing another period of high sales pressure. This time around, experts are concerned about a potential market downturn given the current state of global economy and political uncertainty. The rising VIX index and the S&P 500 drop contribute to this concern, suggesting further weakening in the market.