Bitcoin Bulls on the Ropes? Four Sell Signals Flash Warning Lights

Bitcoin’s relentless rally might be hitting a wall—four technical sell signals just triggered simultaneously, the most since the 2021 bull run peaked. Is this the moment hodlers start sweating?

Technical indicators screaming ’overbought’ while Wall Street’s latest ’crypto expert’ tries to time the market? Classic. The charts don’t lie—but whether this is a healthy pullback or the start of something uglier depends on who’s holding the bags.

One thing’s certain: when BTC gets shaky, the whole crypto casino holds its breath. Next 48 hours could separate the diamond hands from the margin-called ghosts.

Four consecutive sell signals

According to Adler, Bitcoin’s Net UTXO Supply Ratio has now flashed four straight sell signals. That’s alongside a visible drop in the UTXO Ratio—a combination that typically signals an overheated market.

Source: CryptoQuant

During this market phase, profit-taking occurs and demand starts to lag supply.

When these two events occur, they indicate that a large share of coins have moved into unrealized profit, thus reducing the incentive to HODL and increasing the potential of profit taking.

Source: CryptoQuant

On-chain data supports Adler’s thesis. Bitcoin’s Net Unrealized Profit plunged to 0.553—its lowest in weeks.

A drop here suggests that most of the holders are currently holding fewer gains than before. Thus, profit margins have dipped, signaling market weakness.

In fact, investors who bought BTC between $104K and $112K are now underwater.

These two scenarios risk market capitulation as investors start panic selling, causing further downside. As such, Adler posited that, at the current point, the market needs a serious reset.

Source: CryptoQuant

The said market reset will mean several things for Bitcoin’s future price movement.

Firstly, the prevailing conditions could see BTC trade sideways between $95k and $105k until the Net UTXO Supply Ratio stabilizes around 0.85 – 0.9.

This will occur, signaling a strong market cooling off after a series of sell signals. Alternatively, a sharper pullback to $92K may play out first, easing the current overheated structure.

In either of these cases, we will see Bitcoin drop below $100k until the market cools down again.

BTC selling pressure builds — Will $101K hold?

On top of weak profit metrics, the Taker Buy-Sell Ratio has remained negative for four straight days.

Source: CryptoQuant

This signals a high selling activity in the market. If the selling pressure continues, we will see BTC drop to $101,488. If this support fails to hold, a dip below $100k is inevitable, with the next support around $98,890.