Markets
Here’s who is selling BTC and has started a correction
Since the price of Bitcoin rose above $71,000, followed by the Ethereum spot ETF approved, market participants were confident of reaching a new all-time high. Unfortunately, all expectations were changed into rejection, while the recent pullback confirmed a strong downtrend. Huge bearish candles, which outperformed the buying pressure, dragged the price down BTC price out of the bullish range. So, now it is believed that heavily speculated fund under $60,000 could finally be achieved.
In times when institutions have seen record inflows in recent days, who is selling Bitcoin and creating selling pressure?
THE Bitcoin price it has been consolidating within the range for over 100 days now and this may have caused a strong capitulation of miners, which is rare. This was the result of the halving event, which eliminated weak miners. Furthermore, the average cost for miners increased above $75,000 per BTC, while the spot price fell below $67,000. This may therefore have forced them to scale back their balances, which were the lowest in the last 6-8 months.
According to data from GlassnodeBitcoin miners’ balances have been steadily declining, hitting multi-year lows while sales have increased following the recent Bitcoin halving in April 2024. According to Glassnode data, balances have dropped from 1.84 million BTC at the start of 2023 to 1.8 million BTC by May 2024. This trend highlights the miner’s need to cover operational expenses following the reduction in block rewards.
Therefore, it can be said that Bitcoin miners have played a significant role in the recent BTC price correction. They are alleged to have sold over 1,200 BTC, or nearly $80 million, preventing the rally from surpassing the crucial resistance at $71,800. Fortunately, this phase of capitulation has come to an end, which could start a new bullish phase. However, the question remains the same: has Bitcoin (BTC) price managed to form a new ATH at $75,000 or not?
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