Bitcoin’s recent rally seems to have stopped due to a 2.1% decline in the past 24 hours, with assets falling above $104,000. This latest movement marks a potential shift in short-term market momentum, with traders increasingly opting to exit positions.
Although the broader cryptocurrency market has experienced a similar pullback, Bitcoin’s trajectory is being carefully examined due to its impact on overall sentiment and market structure.
Analysts are examining external factors, especially how geopolitical developments affect trading behavior. One such development is the military participation between Israel and Iran on June 13, which has triggered sales pressure on high-risk assets, including digital currencies.
In these events, key indicators regarding second-hand holdings, especially the net recipients, show an increase in the seller’s advantage, which suggests that short-term volatility may continue.
Binance Net Taker Volume in multiple low weekly sales of Bitcoin panic
According to Amr Taha, a chain analyst on CryptoQuant’s QuickTake platform, the net revenue volume of Bitcoin fell to -$190 million, the most negative reading since June 6.
This metric compares aggressive sales with aggressive purchases, indicating that traders are intensifying their urgency to sell at market prices, bypassing limit orders. The seven-hour moving average (7HMA) has remained in the negative zone since June 12, which has exacerbated the current downward pressure.
Historically, this extreme of net income earner volume is associated with local price lows, as they often indicate panic-induced retail and overdriver surrender.
Taha stressed that a similar incident occurred on June 6, followed by a rebound of 4% at the price of Bitcoin within 24 hours. This means that while positive sales may indicate weakness, it also proposes conditions before previous price reversals.
Geopolitical shocks will trigger liquidation cascades
Taha also pointed out that the geopolitical context, especially the sudden escalation between Israel and Iran, is a major catalyst for recent market behavior. News of the strikes have led to a surge in liquidation activities, especially in a long forgotten position.
The correlation between conflict time and spikes in binary sales suggests that traders respond to broader market uncertainty, which contributes to the downward momentum.
Nevertheless, Taha still believes that these conditions may be optimistic in the medium term. Large sales often rush out weak hands, creating opportunities for long-term holders or institutional participants to accumulate positions at lower prices.
Taha suggests that while the short-term outlook remains volatile, the current setup is similar to the previous recovery phase, marked by counter-trend buying and reducing sales pressure.
Feature images created with DALL-E, TradingView’s chart
