Who Is Selling Bitcoin?

What will happen when the Altcoin selling stops?

Author

Markus Thielen
February 06, 2025

👇1-14) Our Bitcoin trend model turned bearish on February 2, while the Diamond Top pattern shows BTC drifting lower on the right-hand side—a formation that suggests bearish consolidation and the potential for a retracement of the rally that began in November.

Bitcoin - Diamond Top Formation

👇2-14) Bitcoin was on the verge of a breakout, reaching $105,500 before Trump's tariff announcement added another layer of uncertainty to the market. Simultaneously, the Fed’s persistent hawkish stance and the sharp declines in Bitcoin and Ethereum may have discouraged traders from increasing their crypto exposure instead of waiting for more favorable conditions.

👇3-14) Bitcoin has staged a partial rebound, and Ethereum’s sharp drop was amplified by option gamma hedging and futures liquidations, past large ETH liquidations have not historically led to sustained recoveries. However, weak technical factors suggest further downside risk remains.

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