The leading cryptocurrency, Bitcoin, has been trading in a narrow range lately. Although $BTC continues to hold around $60,000, blockchain data analyst Axel Adler stated that if Bitcoin falls below $61,500, selling pressure on the market could increase further.
In this context, Axel Adler analyzed the $BTC UTXO stress test indicator in his latest blog post.
The analysis showed that Bitcoin has re-entered a zone of high stress, as the $BTC UTXO indicator rose above the critical threshold of 70 to 71.58.
According to the analyst, this indicates that a significant portion of circulating bitcoins are in the loss zone, and pressure on investors is intensifying again.
The analyst noted that roughly a year ago, this same indicator was at 41, and the market exhibited a more neutral dynamic.
Adler stated that the stress level had been gradually decreasing over the past month, but the weekly positive momentum of +3 indicates that stress and selling pressure have started to build up again.
Adler stated that if the indicator falls below 70 and the momentum remains negative, stress and selling pressure will decrease. Conversely, however, if $BTC falls below its monthly low around $61,500 and the indicator rises above 90, selling pressure on $BTC could intensify even further, leading to a further decline.
In this context, Adler asserts that Bitcoin's short-term prospects largely depend on whether the price can hold critical support levels and on changes in blockchain data, while a major player in the options market believes Bitcoin will not surpass $70,000 by September 25th.
A Giant Whale Sets a $70,000 Cap for Bitcoin!
An anonymous major investor specializing in options sold Bitcoin option contracts worth $173 million, betting that Bitcoin will not rise above $70,000 by September 25th.
If, at the option's expiration, Bitcoin's strike price does not exceed $70,000, the investor will retain their option premium of $3.03 million. However, if Bitcoin's price rises above $70,000, the position will start to incur losses.
*This is not investment advice.
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