Key Insights
- Its trading volume has increased by 50% to $39.55 Billion.
- Bitcoin miners have sold more than 2000 BTC indicating a selling signal.
The price of Bitcoin (BTC) has experienced a period of correction following a robust bullish rally. BTC price has been rejected twice from the $107K mark during this bull run. The price showed weakness in the final week of December, plunging below the 20-day EMA.
Bitcoin miners recently sold more than 2,000 BTC. Due to this recent movement, the market is looking into the possible impact on the price of Bitcoin.
Investors watch Bitcoin as it gets closer to the $94,393 Fibonacci retracement support level, which is 23.60%. Derivative exchanges lost millions of dollars in value due to massive liquidations brought on by current market sell-offs.
Bitcoin Miners Selling BTC, Rising Fear in Market
Notably, on-chain data from cryptocurrency analyst Ali Martinez showed that Bitcoin miners had transferred over 2,000 BTC in the previous few days.
Miners’ movements of Bitcoin reveal security precautions against market threats as well as the distribution of profits.
Because significant BTC transfers into exchanges usually result in increased market selling conditions, the price of Bitcoin tends to respond to past miner sell-offs.
Their Bitcoin reserves are trending downward, BTC miners’ holdings have dropped to 1.8089 million BTC.
Investors may become concerned about volatility if there is persistent selling activity in the market and Bitcoin fails maintain its support levels.
The market waits to see how much demand there is to support this supply expansion while keeping an eye on Bitcoin’s short-term trajectory.
Bitcoin Price Showing Weakness Below 20-day EMA
When writing, Bitcoin was trading at $96,300.00 which has slightly increased in the past 24 hours. The market capitalization was $1.89 Trillion and the 24-hour trading volume was $38.27 Billion.
Based on the technical chart, the BTC price has been hovering below the 20-day EMA for the past few weeks.
Recently, the price has faced resistance from the $107,000 level. Furthermore, it has triggered bearish momentum and slipped below the 20-day EMA.
Bitcoin price chart has been following an immediate support of $95,500.00. The price has squeezed between this level 20-day EMA. If the price triggers a breakout from the 20-day EMA, it could travel to the resistance zone of $107K.
On the other hand, if the price slips below the $95,500.00 level, sellers might be active. Losing this level could be a bearish signal and the price could melt to the major support level of $92K.
Bitcoin Price Forecast Amid BTC Miner Offloading Spree
The recent actions of Bitcoin miners, including the sale of over 2,000 BTC, have raised concerns about potential downward pressure on Bitcoin’s price.
With current trading hovering around $96,300 and crucial support levels at $95,500 and $94,393, the market is on edge, particularly as BTC has shown weakness and has faced rejection around the $107K resistance.
Continued selling activity from miners could lead to increased volatility and risk of breaching essential support levels, potentially driving prices down to the major support at $92K.
Investors will need to closely monitor market dynamics and demand to gauge the future trajectory of Bitcoin’s price amidst these developments.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
