Bitcoin has gained over 10% over the past week, reclaiming the $60,000 level on Friday. After initially having a negative performance in September, this latest price rally in the cryptocurrency market leader has sparked a lot of positive sentiment among investors. However, Cryptoquant analyst CRYPTOHELL reports that this bullish momentum is being challenged by opposing forces that are pushing the BTC market to a crossroads.

Bitcoin Market Stands Still – What’s Next?

IN Quick post on Saturday, CRYPTOHELL said that the current situation in the Bitcoin market gives both positive and warning signals.

On the positive front, the crypto analyst notes that there has been a decline in BTC exchange reserves, indicating reduced selling pressure, with investors opting to hold on to their holdings in anticipation of future price increases. This bullish sentiment is further bolstered by robust demand from US-based investors, as clearly seen in the demand for Bitcoin spot ETFs and as indicated by indicators such as the Coinbase Premium Index.

On the other hand, CRYPTOHELL states that there are market changes that may require investors to exercise caution.

First, the analyst highlights that the past 7 days have seen higher than average net flows of Bitcoin, which could indicate the presence of significant selling pressure. Furthermore, the adjusted spend profit ratio (aSOPR), a key indicator for gauging market sentiment, shows that investors are taking moderate profits, which indicates selling pressure on Bitcoin.

Additionally, this negative sentiment is reinforced by negative funding rates in the derivatives market, meaning many traders are taking leveraged tiny positions in anticipation of a price decline.

The simultaneous occurrence of these bullish and bearish factors has pushed the BTC market into an “anxiety phase” where most investors are uncertain about the digital asset. However, long-term investors are still largely dormant, which is a massive plus for the bullish forces.

In summary, CRYPTOHELL states that the Bitcoin market is at a “decision point” and given that technical indicators are also neutral, future price movements will potentially be dependent on significant changes in market sentiment and vital news, possibly regarding adoption, regulation, etc.

BTC Leverage Ratio Hits Novel Yearly High

In other news, cryptocurrency analyst Ali Martinez he reported that the total estimated Bitcoin leverage ratio across exchanges has reached a recent yearly high. This development largely means that Bitcoin traders are taking on more risk by opening more positions with borrowed funds. While leverage can generally lead to increased profits, it also creates the risk of significant losses that can trigger large-scale liquidations. This is why there is a need for increased caution in the BTC market.

At the time of writing, Bitcoin is trading at $60,220, down 0.23% over the past day. Interestingly, Bitcoin trading volume is down 51.83%, valued at $15.74 billion.

Related Reading: Analyst Reveals Bitcoin Price Recovery Hinges on This Key Market Indicator