Bitcoin is trading 10% below its all-time high, having erased some of its value since August 14 due to intense profit-taking.
The leading cryptocurrency is currently trading at the $110,000 level, and on-chain signals suggest a deeper correction may be imminent.
BTC Futures Traders Pulling Back as Selling Continues
On-chain data indicates that selling pressure continues to increase, threatening to push BTC below the psychological $110,000 threshold.
One of the most prominent signs is BTC‘s Taker-Buy Sell Ratio, which has been predominantly negative since July. At press time, it stands at 0.96 according to CryptoQuant, which shows that sell orders are dominating buy orders in the coin’s futures market.
A taker buy-sell ratio measures the ratio between buy and sell volumes in the futures market. Values above one indicate that buy volume exceeds sell volume, while values below one suggest that more futures traders are selling their assets.
This trend for BTC shows that futures traders are pulling back from aggressive bullish bets, contributing to the pressure already on the market. This reveals a lack of conviction among derivatives traders that the leading cryptocurrency will see a significant recovery in the near term.
Bitcoin Spot Traders Turn Sellers
The trend is no different among spot market participants. According to CryptoQuant data, Bitcoin’s Spot Taker CVD (Cumulative Volume Delta, 90-day) flipped from “neutral” to “sell” on August 18.
Since that date, it has consistently shown red bars, indicating that sellers are dominating spot market activity. This shift to a taker-sell dominant phase for BTC reflects a decrease in demand and weaker absorption on the buy side of an increasing supply. As spot traders increasingly sell and refrain from accumulating, this imbalance heightens the risk of further declines.
$110,000 Support Level Threatened by Decreasing Demand
With demand falling in both the spot and futures markets, the leading coin BTC is at risk of dropping below $110,000. In this scenario, the coin’s price could retreat to the next significant support level of $107,557.
However, if buyers regain dominance and initiate a rally, they could push the price of BTC up to $111,961. A breach of that wall could trigger a move to $115,892.
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