A closely watched on-chain analyst believes that as Bitcoin (BTC) rebounds to new highs, a deeper decline may ultimately occur.
In a recent interview on the What Bitcoin Did podcast, pseudonymous analyst Checkmate stated that on-chain data indicates a significant decrease in selling pressure for BTC since people sold stocks near the all-time high in April.
However, the analyst suggests that due to a lack of new demand, Bitcoin still struggles to maintain its upward trend.
“We saw one peak in ETFs, about 30% was GBTC, but not all. We saw a lot of people selling at that peak. But at the same time, their spending has indeed fallen.
So in many ways, the bull market should reduce the pressure on us. However, we haven’t gone higher. That’s why we must be very, very conscious: theoretically, we should be able to go higher more easily, because there are fewer sellers.
In fact, we didn’t tell us, we just didn’t have the second wave of demand.”
Checkmate predicts that Bitcoin will need to be at lower levels to find investor interest before gaining momentum for the next bull market.
“The market usually needs a catalyst… What’s the number one catalyst? Price drop. Bitcoin falling. Eventually, it’s either a flash crash, people intervene to buy like in March 2020, I’m not saying this will happen, or it’s a bear market.”
The way up is often through the way down, the market will look for any excuse. Financial media will say, “Look at high mountain, look at Sailer…”
They will find some reasons, but ultimately, we don’t have an inflow of demand. We’ve been wandering around doing nothing… Ultimately, the market falls, because there isn’t enough money to push us higher, and it keeps falling until marginal buyers are found.
That’s how the market operates: it has to fall before it rises.”
At the time of writing, Bitcoin is valued at $60,660.
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