Bitcoin (BTC) dropped from $ 10,580 to $ 10,258 on Coinbase on September 13th. It fell 3% in nine hours after network data indicated the mining might be sold.
Miners continue to put heavy pressure on Bitcoin sales
Over the past week, network analysts reported that miners sold relatively large amounts of Bitcoin.
Miners are one of two unprecedented sources of pressure from sellers in the cryptocurrency market other than exchanges. Thus, when miners move the mined bitcoins, this can lead to a huge demand for sales.
On September 3, Cointelegraph announced the transfer of BTC funds from large mining pools. Ki Yong Ju, CEO of Analytics Firm said:
“As is well known, some Chinese miners already know mining profitability (ROI) and may be reluctant to join the industry with new competitors due to the beef market.”
Meanwhile, according to Glassnode, a metric showing capital flows from miners to exchanges has just reached its highest level in five months. The previous peak was in mid-August, when BTC reached its peak in 2020, surpassing $ 12,000, immediately followed by a correction of around $ 10,000.
Regular sales allow miners to cover the costs by maintaining large mining centers. Glassnode said:
Bitcoin $ BTC miners reached the exchange flow (1d MA) to a 5-month high of 50351 BTC. Previous 5-month high was observed at 44,479 BTC on August 14, 2020. ‘
If BTC quickly recovered after the miners withdrew funds, this would indicate sufficient demand from retail investors on the exchanges. However, if the BTC price continues to decline, this means that there is not enough demand to deal with selling pressure.
What traders are saying about bitcoin in the short term
In the short term, traders tend to be cautiously optimistic despite shedding 10,500 BTC.
Traders say they are unlikely to overcome this high level of resistance on the first try. Perhaps the slight rejection of resistance was of historical significance as well.
A trader under a pseudonym known as “The Byzantine General” said the short-term liquidation occurred after an initial rise to $ 10,500.
“As usual, the liquidity level is where it is. Liquids are being taken, prices are dropping. There are only a few licenses left. From here I can see it growing again, otherwise it might drop a bit to 10100.”
Scott Melker, another popular cryptocurrency trader, said the $ 10,500 area is a serious opposition to Bitcoin.
Given the importance of the resistance level, the trader said it is unlikely to result in a significant setback. Melker said:
“Don’t expect to break the main resistance in the first test. Also, don’t expect a first failure to lead to an epic discharge.”
Meanwhile, in his recent analysis of Bitcoin prices, trader Michael Van de Pope also pointed to this level as an important obstacle that must be overcome in the short term. But for the upside to continue, previous resistance levels must be tested and confirmed as fresh support before rising, he explains.
“On the other hand, if Bitcoin price breaks through the $ 10.450 level, the potential and decisive turnaround will be in the $ 10900-11000 range,” Van de Pope adds.