BITCOIN SELL THE RALLY INDICATOR FLASHES AGAIN AS BTC PRICE BREAKS BELOW $45K

Last updated: June 19, 2025, 20:10 | Written by: Anthony Pompliano

Bitcoin Sell The Rally Indicator Flashes Again As Btc Price Breaks Below $45K
Bitcoin Sell The Rally Indicator Flashes Again As Btc Price Breaks Below $45K

The volatile world of Bitcoin never sleeps, and recent price action has traders on high alert. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.After a period of relative calm, a familiar warning signal has resurfaced: the dreaded ""sell the rally"" indicator.This on-chain metric, which has historically proven adept at identifying false bullish breakouts during corrective phases, is now flashing red as the price of Bitcoin dips below the $45,000 mark.This development has triggered a wave of uncertainty, leading investors to question whether the recent rally was merely a temporary reprieve or a precursor to a more significant bullish surge. Bitcoin price showed strength over the weekend with a 2.45% rally to the upside, aligning with the US stock market's positive outlook and rising global liquidity. The Global Liquidity Index's Z score flashing a buy signal suggests that an explosive uptrend is next for BTC price, as every time the liquidity index has fallen to -3, it has been aIs this a signal to take profits and brace for another potential downturn, or a fleeting blip before Bitcoin resumes its upward trajectory? With sentiment heating up and BTC hovering just below its previous peak, is the next leg of the rally about to begin? A surge in market confidence? According to a recent CryptoQuant report, the Taker Buy/Sell Ratio has broken decisively above the 1.00 mark, hitting 1.02 a level historically linked to breakout moments in Bitcoin s priceUnderstanding the nuances of this indicator and its historical performance is crucial for navigating the current market landscape.The coming days and weeks will be pivotal in determining whether Bitcoin can defy the bearish signal and establish a new foothold above key resistance levels, or whether the market is destined for further consolidation or correction.

Understanding the 'Sell the Rally' Indicator

So, what exactly is this ""sell the rally"" indicator and why is it causing so much concern? For confirmation, Bitcoin must close above $110,000, which would establish a new ATH. The Parabolic Curve pattern indicates a potential rally similar to previous base breaks, which theoretically could push BTC toward $185,661. However, a more practical and realistic target places BTC on track to reach $120,000 in the near term. Bitcoin PriceIn simple terms, it’s an on-chain analysis tool designed to identify moments when Bitcoin's price has been artificially inflated during a downtrend. BTC Poised For Breakout As Price Nears $100,000 Again. The Bitcoin price is once again approaching the $100,000 mark after its latest 4.75% surge this past week. Amidst its price recovery, crypto analyst Trader Tardigrade predicts that Bitcoin will soon break out of bearish resistance to reach new highs.It seeks to highlight instances where bullish momentum is unsustainable, often leading to a subsequent price correction. A closely followed crypto analyst says Bitcoin is giving off a reading that previously signaled the start of a nearly 3X surge.Crypto strategist Ali Martinez tells his 67,100 followers on the social media platform X that Bitcoin owners who bought their coins within the last one to three months witnessed significant losses after the top digital asset slumped below $55,000 earlier this month.The indicator evaluates several factors, including:

  • Short-Term Holder NUPL: This looks at the profitability of short-term holders (those who've held Bitcoin for less than 155 days).A high NUPL value for this group can suggest an overbought condition and potential for a sell-off.
  • RC Deviation Indicator: Identifies overbought conditions.
  • Market Sentiment: Gauges the overall feeling within the crypto community, looking for signs of excessive euphoria which often precedes corrections.

When these factors align, the indicator flashes, suggesting that the current rally might be a ""dead cat bounce"" – a temporary recovery in a longer-term downtrend. The last time this signal flashed, Bitcoin s price rocketed from $4,000 to highs of $14,000. Before that, the same signal also emerged right before Bitcoin s parabolic rally in late-2025. Bitcoin Shows Signs of Immense Strength as Analysts Watch Key Resistance at $11,700Think of it as a warning siren, urging caution before jumping headfirst into what might be a trap.

Historical Significance: Learning from the Past

The effectiveness of any indicator lies in its historical performance. As the Bollinger Bands align, Bitcoinsensus predicts a potential rally toward $130,000 $160,000. This would mark a historical all-time high for Bitcoin, representing a maximum increase of over 46.7% from its current ATH above $109,000. BTC Poised For Breakout As Price Nears $100,000 Again. The Bitcoin price is once again approaching theIn Bitcoin's case, this ""sell the rally"" signal has a track record of accurately predicting pullbacks. Key Bitcoin Indicator Flashes Again Will BTC Rally to New Highs? In the fast-paced world of cryptocurrency, every indicator can be a beacon for potential market shifts. Today, we focus on Bitcoin s Taker Buy/Sell Ratio a metric that recently surged to levels reminiscent of pre-breakout scenarios.For instance, this signal emerged in August 2025, prior to significant market corrections.Another instance was right before Bitcoin’s parabolic rally. Wall Street analysts scramble to update price targets (better late than never). Meanwhile, crypto OGs smirk they ve seen this script play out before. One hedge fund manager sniffed, It s not a real rally until we get a useless meme coin pumping 10,000%. Tick-tock. Bitcoin Taker Buy-Sell Ratio Signals Renewed Bullish ControlHowever, it's crucial to remember that no indicator is foolproof. Bitcoin Eyes Continuation As Key Indicator Flashes Early Bullish Signal. Bitcoin is preparing to test uncharted territory after months of heavy selling pressure, negative sentiment, and persistent macro uncertainty. Following a strong rally that pushed the price above $100,000, BTC is now finding resistance near the $104,000 level a keyThe market is a complex beast, and past performance is not a guarantee of future results. Bitcoin price has dropped over 6 percent since May 23 and is trading just above the $104,000 support level. The daily chart shows a bearish Three Pushes to a High pattern according to Bollinger Bands analysis. A breakdown below the $102,900 support could shift the high-timeframe market structure toContext matters.

Take for example the period before the major rally.The signal flashed then, but astute investors who looked beyond the indicator and considered other factors, such as increasing institutional adoption and positive regulatory developments, recognized the potential for sustained growth. Bitcoin s recent price action reveals a bearish display as it breaks below a key moving average, a level that has historically provided strong support. This downturn suggests a possible shift in momentum, with bearish pressure increasing and raising questions about whether the current dip is a temporary pullback or the beginning of a largerThis underscores the importance of using indicators as just one piece of the puzzle, not the sole determinant of your investment strategy.

Bitcoin Price Action: Breaking Below $45,000

The current flashing of the ""sell the rally"" indicator coincides with a significant price movement: Bitcoin's break below the $45,000 level.This breach is concerning for several reasons:

  • Psychological Barrier: $45,000 acts as a key psychological level.Breaching it can trigger stop-loss orders and further selling pressure.
  • Moving Averages: Bitcoin has broken below a key moving average, which historically provided strong support.This suggests a shift in momentum.

The immediate implications of this price action are likely to be increased volatility and uncertainty. Apodado Bitcoin: Holder a corto plazo NUPL, el indicador tiene en cuenta la salida de transacciones no gastadas, o UTXO, de transacciones de BTC que no tienen m s de 155 d as de antig edad. Al hacerlo, intenta determinar si un inversor es rentable dentro de los 155 d as posteriores a la compra y posesi n de Bitcoin.Traders are now closely watching to see if Bitcoin can reclaim the $45,000 level and establish a new support base, or if the decline will continue towards lower support levels.

Contrasting Signals: Bullish Indicators Remain

Despite the bearish signals, the Bitcoin landscape isn't entirely devoid of optimism.Other indicators suggest that a potential rally could still be on the cards. Bitcoin 'sell the rally' indicator flashes again as BTC price breaks below $45K An on-chain indicator, notorious for spotting fake bullish breakouts during downside corrections, flashes againLet's examine some of these contrasting signals:

Taker Buy/Sell Ratio

According to a CryptoQuant report, the Taker Buy/Sell Ratio has broken decisively above 1.00, reaching 1.02. Right now, Bitcoin s price is 95,974.88, having dropped from 101k. 😬 While that decline might seem small, the RC Deviation indicator is flashing a warning again, indicating that Bitcoin might be experiencing another overbought condition. 🚨 Why this is important:This level has historically been linked to breakout moments in Bitcoin's price.A Taker Buy/Sell Ratio above 1 indicates that buyers are more aggressive than sellers, suggesting renewed bullish control.

Global Liquidity Index

The Global Liquidity Index’s Z score is flashing a buy signal. Is the Bitcoin market cycle over, or will the rally extend again? Bitcoin fell sharply after reaching a new all-time high of $109,356 on Jan. 20. The price declined to $91,530 on Feb. 3 but bounced afterward, creating a massive bullish engulfing candlestick. Since then, the Bitcoin movement has been absent of any volatility whatsoever.This suggests that an explosive uptrend could be next for BTC price.This positive alignment with US stock market trends and rising global liquidity adds another layer of complexity to the current outlook.

Analyst Predictions

Crypto analyst Trader Tardigrade predicts that Bitcoin will soon break out of bearish resistance to reach new highs. The next few days will be critical as Bitcoin tests this key metric. If BTC can reclaim $100K while the STH-SOPR breaks above 1.0, a bullish trend reversal may be confirmed. However, if rejection occurs, the market could face another wave of selling, pushing BTC into lower demand levels. Bitcoin Price Action Remains UncertainOther analysts point to Bitcoin owners who bought their coins within the last one to three months witnessing significant losses after the top digital asset slumped below $55,000 earlier this month, which could indicate a potential bottoming out.

Potential Targets: Where Could Bitcoin Go Next?

If Bitcoin manages to overcome the bearish pressure and sustain a rally, several potential price targets are being discussed:

  • $120,000: A realistic target for the near term.
  • $130,000 - $160,000: Predicted by Bitcoinsensus, potentially marking a historical all-time high.
  • $185,661: Based on Parabolic Curve patterns.

These targets are based on various technical analysis methods and market sentiment.However, it's essential to acknowledge that these are just estimations and should not be taken as guarantees. Proven Bitcoin Momentum Indicator Flashes Green, Supporting Analyst $140K-$200K Price Predictions A positive flip in the indicator has preceded every major rally since 2025.Reaching these targets depends on a multitude of factors, including continued institutional adoption, favorable regulatory developments, and overall market sentiment.

Risk Management: Navigating the Uncertainty

In such an uncertain market environment, risk management becomes paramount. Um indicador on-chain Bitcoin que detectou 'pulos de gatos mortos' durante as corre es de baixa do mercado do ano passado acendeu novamente em agosto de 2025. Chamado de Bitcoin: Short Term Holder NUPL, o indicador leva em considera o a sa da da transa o n o gasta, ou UTXO, de transa es BTC com n o mais de 155 dias. Ao fazerHere are some practical steps you can take to protect your investments:

  1. Set Stop-Loss Orders: Protect your capital by setting stop-loss orders at levels you are comfortable with.
  2. Diversify Your Portfolio: Don't put all your eggs in one basket.Diversify across different cryptocurrencies and asset classes.
  3. Manage Your Leverage: Avoid using excessive leverage, as it can amplify both gains and losses.
  4. Stay Informed: Keep abreast of market news and developments, and adjust your strategy accordingly.
  5. Consider Dollar-Cost Averaging (DCA): If you believe in the long-term potential of Bitcoin, consider using a DCA strategy to mitigate risk.

Remember, investing in Bitcoin involves inherent risks, and it's crucial to only invest what you can afford to lose.Always conduct thorough research and consult with a financial advisor before making any investment decisions.

Questions and Answers About Bitcoin Market Signals

What does it mean when a 'sell the rally' signal flashes?

A 'sell the rally' signal suggests that a recent upward price movement in Bitcoin is likely unsustainable and could be followed by a price correction. A long-term descending resistance trend line rejected BTC. Will Bitcoin break above this resistance, or will it fall to new lows? Interested in buying or selling BITCOIN (BTC)? Read our review of the best exchanges to buy and sell BITCOIN (BTC). After a 30% drop since its all-time high, Bitcoin found relief on March 11 and began a 14-day rally.It indicates an overbought condition and potential for a sell-off, especially during a downtrend or corrective phase.

Should I automatically sell my Bitcoin when this indicator appears?

No, you shouldn't automatically sell.The signal is just one factor to consider.Evaluate other indicators, market sentiment, and fundamental news before making a decision.It's crucial to perform your own analysis and consider your risk tolerance.

Are there any conflicting signals to consider?

Yes, other indicators, such as the Taker Buy/Sell Ratio and Global Liquidity Index, may suggest bullish momentum.Analyst predictions and positive developments in institutional adoption and regulation can also contradict the bearish signal.A comprehensive view of the market is necessary.

How reliable is the 'sell the rally' indicator?

While the indicator has proven accurate in the past, no indicator is foolproof.Market conditions can change, and unforeseen events can impact Bitcoin's price.Use the indicator as a tool for analysis, but don't rely on it exclusively.

Conclusion: Navigating the Bitcoin Landscape

The current flashing of the ""sell the rally"" indicator, coupled with Bitcoin's break below $45,000, presents a complex and uncertain picture.While the bearish signal warrants caution, it's essential to consider the contrasting bullish indicators and the potential for a rally.By carefully managing your risk, staying informed, and conducting thorough research, you can navigate the volatile Bitcoin landscape and make informed investment decisions.The next few days and weeks will be crucial in determining Bitcoin's trajectory.Keep a close eye on key support and resistance levels, monitor market sentiment, and be prepared to adjust your strategy as needed.Remember, the crypto market is ever-evolving, and adaptability is key to success.

Key Takeaways:

  • The ""sell the rally"" indicator has flashed, signaling potential for a price correction.
  • Bitcoin has broken below $45,000, increasing bearish pressure.
  • Contrasting bullish indicators suggest a rally is still possible.
  • Risk management is crucial in this uncertain environment.
  • Stay informed and adapt your strategy as needed.

Want to stay up-to-date with the latest Bitcoin news and analysis?Subscribe to our newsletter for exclusive insights and market updates!Don't forget to conduct your own research and consult with a financial advisor before making any investment decisions.Good luck trading!

Anthony Pompliano can be reached at [email protected].

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