Since January 21, Bitcoin miners have been decreasing their BTC holdings, contributing to the ongoing correction of the asset. This trend of miners selling their Bitcoin has intensified the selling pressure on the cryptocurrency, which happens to be the largest in terms of market capitalization. With the rising selling pressure, experts predict that the bearish market could potentially drive the Bitcoin price down to a volume gap of $19,500 to $16,600.
The reduction of BTC reserves by Bitcoin miners has been a significant contributor to the downward trend in Bitcoin's price. This trend has been further amplified by the increase in selling pressure caused by the sale of Bitcoin by miners.
In addition, Bitcoin miners have been shedding their BTC holdings due to the volatility in the cryptocurrency market. As miners validate transactions and add them to the blockchain, they receive rewards in the form of BTC, which fluctuates in value with the volatility of the market."
"Furthermore, there are speculations that Bitcoin may begin a recovery rally ahead of the US Nonfarm Payrolls data release.
Miners usually sell their Bitcoin holdings to cover operational expenses. However, since January 21, 2023, miners have been aggressively decreasing their BTC reserves, which has been one of the driving factors behind the decrease in Bitcoin's price.
The sale of Bitcoin by miners has also contributed to the increase in selling pressure on the cryptocurrency, which happens to be the largest in terms of market capitalization.
Miners usually sell their Bitcoin holdings to cover operational expenses. However, since January 21, 2023, miners have been aggressively decreasing their BTC reserves, which has been one of the driving factors behind the decrease in Bitcoin's price.
The sale of Bitcoin by miners has also contributed to the increase in selling pressure on the cryptocurrency, which happens to be the largest in terms of market capitalization.
The Bitcoin miner reserve in USD has been observed on CryptoQuant.
According to analysts at CryptoQuant, the current state of cryptocurrency prices is uncertain, driven by Fear, Uncertainty and Doubt (FUD) from various sources, such as Silvergate's voluntary liquidation, macroeconomic outlook, KuCoin's lawsuit, and Huobi Token's flash crash. The increasing selling pressure from BTC miners, coupled with these bearish factors, could potentially push Bitcoin to a price range between $19,500 and $16,600.
Technical experts have identified a volume gap in this price range, making it challenging for Bitcoin to find a local bottom in intermediate zones. Therefore, analysts believe that the cryptocurrency may struggle to stabilize at any point in between these two levels.
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