Bitcoin bull run in danger? Analyst notes that BTC at $40,000 represents the best market signals

Image by: Mikael Seegen – Unsplash

Bitcoin is recapturing some of its gains from the last few days. The number one cryptocurrency by market capitalization could be facing a sharper decline that could push it back towards the $30,000 zone.

As of this writing, Bitcoin (BTC) is trading at $40,950, with a loss of 2% in the last 24 hours. On the weekly chart, the cryptocurrency is recording a loss of 3%, with all tokens in the top 10 by market recording similar performance, with the exception of Avalanche (AVAX).

BTC price is losing bullish momentum in short time frames. Source: BTCUSDT on Tradingview

Bitcoin reaches local top? Bull Run slows down

Over the weekend, Bitcoin was rejected by the critical resistance level at $43,500. According to a pseudonymous analyst, a major player put up a “significant resistance block” as BTC price fell to its current levels.

The chart below shows that the sell order is 1,562 BTC or around $7 million. It also shows strong support for BTC as bullish momentum fades.

The price of BTC is facing a surge in sell orders on the Binance exchange. Source: @JA_Maartun On X

In other words, Bitcoin may slow down, but the $40,000 area could provide crucial support for a potential rebound. Commenting on the increasing sell orders on the books, the analyst stated:

Massive resistance emerged on BTC Binance Spot. This is what a top looks like. A significant resistance block of 1562 BTC has just arrived on the order books.

BTC whales on the move

While many believe the market can handle the increase in selling pressure, crypto analytics firm Material Indicators showed that Bitcoin is losing support from key players. Over the weekend, players who sold orders over $1 million “offloaded” their positions.

The company warned traders of this possibility, arguing that the recent bullish price movement was a strategy to siphon liquidity from retail investors. Once this smaller player stepped in, whales began to “distribute,” or sell, their coins as part of the rally.

With this in mind, the company has set a potential local maximum value for BTC at $45,000. Keith Alan, a senior analyst at Material Indicators, had this to say about the current price action:

The good news is that the market will move to accumulation at some point and falling prices will get us to that point. As bad as things are looking for the bulls right now, I don't expect an immediate downward trend. Time to exercise some patience and see how things develop from here.

Cover image from Unsplash, chart from Tradingview

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers