Bitcoin prices took a beating in the last day, dropping more than 5% and extending a decline that began over a week ago. The price now sits below $66,000, raising concerns about a potential bear market.
Analysts are pointing fingers at several factors, but one culprit might be miner behavior. According to a recent analysis, Bitcoin miners are selling their holdings at the fastest pace since April 2021. This fire sale is putting significant downward pressure on the market.
This selling pressure is backed up by on-chain data, which shows a surge in Bitcoin deposits on exchanges, a sign investors are looking to offload their coins. Additionally, an indicator suggests more investors are selling at a profit, further adding to the bearish sentiment.
The negativity isn’t limited to just short-term traders. Long-term holders seem to be getting jittery as well, with data showing increased movement of their coins.
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Even investor sentiment reflects the gloom. Both American and Korean markets are exhibiting strong selling pressure, according to Bitcoin’s premium metrics in those regions.
Looking at technical indicators, things don’t look much brighter. Bitcoin’s price has fallen below its key 20-day average, and an indicator measuring momentum is signaling a potential continued decline.
In short, things are looking shaky for Bitcoin in the short term. Miner selling and overall bearish sentiment could push prices even lower.
Disclaimer:
The information contained in this article is for informational purposes only and should not be construed as financial advice. Market conditions can fluctuate rapidly, and the opinions presented here may not reflect the future performance of Bitcoin. Please always conduct your own research before making any investment decisions.
