Bitcoin Buying Pressure Wanes—Chart Reveals 60-Day Downtrend
Analysts reported that the crypto community is witnessing a decline in the buying pressure for Bitcoin, pushing the firstborn cryptocurrency into negative territory. However, some market observers noted that not all is l...
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Analysts reported that the crypto community is witnessing a decline in the buying pressure for Bitcoin, pushing the firstborn cryptocurrency into negative territory.
However, some market observers noted that not all is lost in the recent slide of Bitcoin, saying what seems to be an unfavorable condition offers opportunities for long-term investors.
Downward TrendAnalysts said that a weakening buying pressure on Bitcoin might be a cue that the crypto is entering a downward trend phase with some observers saying that BTC is already within the negative pressure zone.
“Bitcoin’s buying pressure has decreased over the last 60 days, allowing room for selling pressure,” Joao Wedson, Founder & CEO of Alphractal, said in a post.Bitcoin’s buying pressure has decreased over the last 60 days, allowing room for selling pressure. Negative regions present two opportunities:
Favoring short positions They signal that the downtrend may continue or has occurred, creating an opportunity to accumulate BTC. pic.twitter.com/dApRsS9Ihf
— Joao Wedson (@joao_wedson) February 17, 2025
Crypto analysts noted that this condition might lead to a decline in price which could be both good and bad for digital assets traders.
Data shows that Bitcoin is having a hard time maintaining a bullish momentum as its price hovers around $95,912 per coin.
Two OpportunitiesWedson said that BTC has been experiencing a decline in buying pressure in the last two months, noting that the market shift could offer something positive to its investors.
“Negative regions present two opportunities,” the CEO noted.He enumerated that among the opportunities is “favoring short positions” which could be a good sign for traders. Another bright spot is the weakened buying pressure that indicates the “downtrend may continue or has occurred, creating an opportunity to accumulate BTC.”
In other words, the current condition of Bitcoin could give investors a chance to build their BTC portfolio by buying more coins.
The Buy/Sell Pressure Delta ChartIn a post, Wedson presented two charts of the Buy/Sell Pressure Delta to illustrate the shifting dynamics between buying and selling activity in Bitcoin, which has been going on in the past 60 days.
Wedson explained that if the market is dominated by sell pressure, investors can take advantage of the downward momentum by entering short positions.
According to historical data, negative pressure zones usually align with a continued decrease in price, a potentially profitable opportunity for traders betting on further price declines.
Meanwhile, the Alphractal executive showed in the graph that a high sell pressure commonly indicates a bearish sentiment, adding that this is a great opportunity for long-term traders to increase their BTC holdings.
Analysts explained accumulating more Bitcoin during this period allows long-term investors to position themselves for a future recovery.
“The decrease in buying pressure is a significant factor to consider. While short positions might seem attractive in a downtrend, the potential for accumulation also presents a compelling long-term strategy,” a crypto investor commented on Wedson’s post.Bitcoin might continue to be at risk of further decline if the buying pressure remains weak.
Featured image from The Independent, chart from TradingView
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