The Bitcoin (BTC) price fell from $ 10,580 to $ 10,258 on Coinbase on September 13th. The 3% drop occurs within nine hours after the network data indicated a possible sale of the miner.

Miners continue to put strong pressure on bitcoin sales
Network analysts said last week that miners were selling relatively more bitcoins.

Miners are one of two unprecedented sources of pressure from sellers in the cryptocurrency market along with stock exchanges. Consequently, when miners move the mined bitcoins, it can lead to massive pressure from sellers.

On September 3, the Cointelegraph reported that bitcoin money was being transferred from large mining basins. Ki Yong Joo, CEO of an analytical company, said:

“As far as I know, some Chinese mining companies are already aware of their mining profits (ROI) and may be reluctant to join the industry with new mining competitors due to the beef market.”

Meanwhile, according to Glassnode, a calculation showing the flow of capital from miners to stock exchanges has just reached its highest level in five months. The previous rally was seen in mid-August when the bitcoin price reached its highest level in 2020, peaking at $ 12,000, immediately followed by a correction of around $ 10,000.

Regular sales allow miners to cover the costs of maintaining large-scale mining centers. Glassnode said:

“Bitcoin $ BTC mining reached exchange flow (1d MA), barely reaching a 5-month high of 50,351 BTC, which is the previous 5-month high of 44,479 BTC on August 14, 2020.”

If BTC recovers quickly from the mining downturn, it will indicate sufficient demand from retail investors on the stock exchanges. However, if the price of BTC continues to fall, it may indicate insufficient demand to absorb sales pressure.

What do traders say about bitcoin in the short term?
In the short term, traders tend to be cautiously optimistic despite Bitcoin’s failure in the $ 10,500 region.

Traders say it is unlikely he will be able to break the main resistance level on the first try. It is also possible that the opposition to the opposition was insignificant given its historical significance.

A pseudonymous trader known as “the Byzantine general” said that the short liquidations came after an initial increase to 10,500 dollars. In the short term, the trader said he expects a setback or a small drop to $ 10,100, explaining:

As usual, the liquidity level has reached its level. Liquids are taken, prices fall. We licked our lips again. I see that from here it goes up again, otherwise it can be a little under 10100. ”

Scott Melker, another popular cryptocurrency trader, said the $ 10,500 area was significant opposition to Bitcoin.

Given the importance of the level of resistance, the trader said it is unlikely to cause a significant setback. Melker said:

“Do not expect to break a lot of resistance in the first test. Do not expect the first mistake to lead to a legendary dump. ”

Meanwhile, in the latest technical analysis of bitcoin prices, trader Michael Van de Pope pointed to this level as an important barrier to short-term penetration. But for the rally to continue, previous levels of resistance must be tested and confirmed as new support before they move up, he explains.

Van de Poppe adds: “If the bitcoin price, on the other hand, breaks the $ 10,450 level, a potential and critical turnaround operation will be built between $ 10,900-11,000.”

Source: CoinTelegraph