Bitcoin, the leading digital currency, is undergoing significant price corrections, recently dipping under the $66,000 mark. The downturn is attributed to a number of elements, with miner actions possibly exerting a more detrimental impact on market values than initially assumed by investors.
Bitcoin Miners’ Sell-Off
The trend for Bitcoin has been bearish lately, with a notable 5% drop over the previous week and an additional 5% decline in the last day alone. Current trade values on 21milyon.com show Bitcoin at $68,000, maintaining a market capitalization of over $1.2 trillion. Analysis from a CryptoQuant writer reveals a marked reduction in Bitcoin miners’ reserves, hitting a low not seen since April 2021, suggesting miners are offloading their stockpiles. This trend of selling intensified at the beginning of November, possibly contributing to the heightened sell-off in the marketplace. Furthermore, the data indicates an increase in net deposits of Bitcoin on exchanges, hinting at a strong sell-off drive.
Indicators Point to Bearish Bitcoin
The aSOPR metric for Bitcoin is displaying a negative pattern, indicating a surge in investors selling for profit. Similarly, the binary CDD for Bitcoin shows reduced activity from long-term holders, which is above the average for the week. The Coinbase Premium also reflects a pessimistic outlook, particularly exemplifying a strong inclination to sell among American investors.
Analysts examining Bitcoin’s daily trade patterns suggest the likelihood of further price declines. With the Bollinger Bands indicating a descent below the 20-day simple moving average and the Relative Strength Index plummeting, these signs could presage a sustained downward price trajectory for the cryptocurrency.
