2 Factors That Could Cause Bitcoin (BTC) to Decline Further in the Near Future

TL;DR

• Recent whale activity indicates that BTC’s price may keep declining in the coming days.
• Nonetheless, analysts are hopeful, as the asset’s RSI approaches oversold territory.

More Troubles Ahead?

Bitcoin (BTC), similar to the overall cryptocurrency market, has seen a significant correction recently. Its price has dropped 7% over the last two weeks and is currently fighting to stay above $110,000.

Bulls hoping for a quick rebound may need to be patient, given two key bearish signals. Firstly, massive sell-offs from whales are notable. Popular X user Ali Martinez pointed out that these large investors have sold 50,000 BTC (valued at over $5.5 billion) in the last 14 days.

Such large sell-offs increase the market supply, potentially leading to a further downtrend unless demand responds accordingly. Additionally, these actions may incite panic among smaller investors, prompting them to sell as well.

The second factor involves the transfer of 20,000 BTC (approximately $2.2 billion) from personal wallets to crypto exchanges. This transfer occurred in the last two weeks and typically results in increased selling pressure. 

Meanwhile, BTC spot ETFs have recently experienced their longest outflow streak of six market days in several months. This indicates a decline in investor interest and may contribute to further market pullback. However, previous instances of such outflows often signaled market bottoms followed by subsequent rallies. 

The Bullish Perspective

Despite the aforementioned signals, BTC continues to attract optimistic forecasts, with many analysts believing that the bull market is not finished. X user CRYPTOWZRD asserts that “a swift bullish reversal” from current levels could elevate the price to $120,000 and potentially even a new all-time high of $131,000.

The asset’s Relative Strength Index (RSI) suggests a possible rebound might be near. This technical analysis tool measures recent price change rates and ranges from 0 to 100. Ratios around or below 30 indicate that BTC could be oversold and due for an upswing, while anything above 70 suggests a correction is underway. Currently, the RSI sits at about 35.