Will it or won’t it? How well can bitcoin [BTC] Resist the selling pressure

have in the past few weeks Bitcoin [BTC] maintained a solid position versus shorts. In fact, that strength was enough to send BTC to $24,000 and sustain it above $20,000 for most of July.

However, things may have taken a new turn. CryptoQuant analyst Ghoddusifar believes the price of BTC could surge reduction because of the selling fares by short-term investors. According to an Aug. 6 blog post, the analyst stated that there is a possibility of a downtrend. He said,

“We see negative divergence on the RSI and MACD oscillators. This could be a pre-signal for the possibility of a wedge break.”

So, is there a connection between BTC’s continued momentum and the analyst’s suggestions?

Projections in alignment

Well, based on the BTC/USDT chart, the analyst might be right. At press time, the Moving Average Convergence Divergence (MACD) underscored that the sellers were in control as the strength of the shorts (orange) was slightly over that of the longs (blue).

The implications of this momentum indicator also seemed consistent with its negative divergence claim.

Source: BTC/USDT on TradingView

The Relative Strength Index (RSI) can also see some downside momentum, consolidating between the 50 level and below. As the indicator struggles to move higher, it could also mean that sellers are taking profits or counting their losses.

Even On Balance Volume (OBV) seemed to be going down. Simply put, BTC has been struggling to withstand the selling pressure at the time of writing.

What is the on-chain outlook?

In the last 24 hours, BTC has been oscillating between the $22,500 and $23,500 price levels. However, the bears appear to be intensifying their efforts for a major drawdown.

Source: Santiment

In fact, as of press time, Santiment data showed there had been one increase in BTC whales selling pressure. This caused BTC to lose momentum on the charts.

Also, further pressure could push BTC towards more volatility at the expense of short-term bulls. There are signs of a market shift if sellers maintain momentum into the weekend. Potential profit-taking by investors could also increase following a surge in accumulation and trading volume later in the week.

Given all of this, buyer activity may need to increase exponentially to counteract the current state of the market. However, BTC has maintained a neutral position for the past 24 hours.

At the time of writing, the change in the charts was almost negligible CoinMarketCap, with the crypto worth $23,199. This confusion about an uptrend or a drop could confirm that selling pressure on BTC has increased.

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