Earlier this week, Bitcoin surged above $104,000, marking a weekly gain of nearly 10%. However, the cryptocurrency has since encountered resistance, resulting in relatively flat price action in recent days. Currently, BTC is trading at $103,663, a modest 1.7% increase over the past 24 hours.
According to CryptoQuant analyst Darkfost's post on X, the slowdown stems from the derivatives market. The cumulative net taker volume, which tracks the net volume of market orders, has remained negative since BTC surpassed $100,000. This indicates more aggressive sell orders (shorts) than buy orders (longs), exerting downward pressure on the price.
Darkfost suggests this reflects growing uncertainty among traders regarding Bitcoin's short-term ability to reach new all-time highs. Technical analyst Javon Marks, however, points to chart patterns indicating a potential continuation of Bitcoin's bullish trend. Marks highlighted the formation of a bull flag, suggesting a pause before further upward movement.
If confirmed, this could signal renewed upward pressure. Marks also noted that altcoins are exhibiting similar behavior to previous market cycles, potentially preceding a broader altcoin rally. This rally historically tends to follow Bitcoin's movements.
This article is based on our author's analysis of materials.