Are Bitcoin Miners about to give up?
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The traces of Bitcoin miners in the recent price drop; Are we about to give up miners?
On the eve of the Federal Reserve meeting, Bitcoin came under intense selling pressure. On the other hand, such metrics also show that miners are aggressively selling their inventory. Although miners apparently sell through OTC markets so that it does not have a high impact on the price of Bitcoin. But in this article, we have investigated this issue more deeply.
If this trend continues, we can expect the price of Bitcoin to drop to $62,500. However, Bitcoin is currently trading at $67,900, up 1.5%.
Surrender of bitcoin miners
Julio Monero, the head of the research department in Cryptocoin, has reported signs of the surrender phenomenon of miners (Capitulation). On Monday, miners sold 1,200 bitcoins, breaking the record since late March.
These transactions took place in the OTC (over-the-counter) market, not exchanges. This shows that miners prefer large and secret transactions that do not have an immediate impact on the market price. This month, the OTC Bitcoin table balance for miners increased by 54,000 BTC, reaching the yearly cap.
Selling OTC Bitcoin Miners – Source: CryptoQuant
This increase in Bitcoin transfers to OTC desks suggests that miners are probably preparing to sell more Bitcoin due to concerns about a possible price drop or an urgent need for cash. In the wake of the recent halving, most mining companies and individual miners announced that they could not maintain profitable operations, which would lead to their possible exit from the industry.
The possibility of a drop in the price of Bitcoin to $62,500
Bitcoin analyst Willy Woo stated that the recent liquidations may cause more negative momentum on the price of Bitcoin. Wu stated that if the next wave of liquidation of long positions reinforces this bearish trend, Bitcoin may fall to $62,500 to eliminate remaining speculative positions.
Bitcoin Liquidation Heatmap on Binance Exchange - Source: Willy Wu
Wu confirmed the need to clean up profit-taking in futures, saying that these liquidations must occur before any further uptrend continues. According to Scalping Pro, Bitcoin will face another failed attempt to break the ceiling of its swing range. Bitcoin has fluctuated between the $60,500 and $71,500 levels since March, and this was its fourth failed attempt to break the $71,500 level.
This analyst further introduced the important support level of $ 65,000, which is in the middle of this fluctuation range, and in her opinion, it is necessary to maintain this level to prevent further price decline.
Source: Scalping Pro
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