Bitcoin (BTC) price fell from $ 10,580 to a low of $ 10,258 on Coinbase on September 13. The 3% decrease in nine hours is due to data on the chain suggesting a possible sell-off of the miners.
Miners continue to put high selling pressure on Bitcoin
Last week, on-chain analysts indicated that miners were selling relatively larger amounts of BTC.
Miners, along with exchanges, are one of two unmatched sources of selling pressure in the cryptocurrency market. When miners move their mined BTC it can create immense selling pressure.
Cointelegraph reported on the transfer of BTC funds from large mining pools on September 3. Ki Young-Ju, CEO of the analytics company, said:
“As I know, some Chinese miners are already realizing their return on investment in mining and may not want new mining competitors to enter the industry due to the bull market.”
According to Glassnode, a metric showing miners’ inflow of capital to the exchanges was just reaching a five-month peak. The previous high was hit in mid-August when the price of BTC hit its 2020 high of over $ 12,000, immediately followed by a correction towards $ 10,000.
Stream from Bitcoin miners to exchanges. Source: Glass knot
Regular settlements allow miners to cover the cost of maintaining large mining centers. Glass knot said::
“Bitcoin flow from miners to exchanges (1d MA) just hit a 5-month high of 50,351 BTC. The previous 5-month high of 44,479 BTC was observed on August 14, 2020.”
If BTC quickly recovers from miner-led withdrawals, it would indicate sufficient demand from retail investors on exchanges. However, if the price of BTC continues to decline, it suggests that there is insufficient demand to absorb the selling pressure.
What traders are saying about BTC in the short term
In the short term, traders are generally cautiously bullish despite the rejection of BTC in the $ 10,500 area.
Traders say that such an important level of resistance is unlikely to be breached on the first try. It is also likely that the resistance was pushed back slightly due to its historical importance.
A pseudonymous trader called “Byzantine General” said short deals were affected after the initial surge to $ 10,500. In the short term, the trader said it expected some minor rebound or decline to $ 10,100. to explain::
“As always, liquidity is where it is. Liquidations are taken, prices are falling. We just made a couple of sales again. I can see this popping up from here, otherwise it might get “downloaded a little more” at 10100.
The BTC price chart with release levels. Source: Byzantine general
Scott Melker, another popular cryptocurrency trader, said the $ 10,500 region is a huge drag for bitcoin.
Given the importance of the resistance level, the trader said that a major pullback is not likely to occur. milker said::
“Don’t expect a larger resistance to break on the first test. Also, don’t expect the first rejection to result in an epic sale. “
In his most recent technical analysis of Bitcoin prices, trader Michael van de Poppe pointed to this level as a major obstacle to the short-term breakout.. For the uptrend to continue, previous levels of resistance must be tested and confirmed as new support before they go up, he explains.
“On the positive side, if the price of Bitcoin is above the $ 10,450 level, the potential and critical pivot is between $ 10,900 and $ 11,000,” added Van de Poppe.