- Bitcoin has faced some intense selling pressure throughout the past 48 hours, with bears stepping up and trying to reverse the cryptocurrency’s recent strength
- They have been continuously targeting $30,000, with the crypto tapping this level on a few occasions before rocketing higher
- Its rally has so far been somewhat weak, and reversed nearly the instant that the crypto moved past $36,000
- This is a grave sign that points to some underlying weakness amongst bulls
- One on-chain analyst is now noting that where the entire market trends next will likely depend on miners
- He notes that miners are the ones who sparked the recent selloff, and data suggests that they may continue dumping their coins in the near-term
Bitcoin is currently in a precarious position. Following what appeared to be a strong rebound, the cryptocurrency has erased its strength and drifted lower, finding some support at $33,000.
This marks an over 10% decline from its overnight highs set at the peak of the recent rally.
This decline may also mark the start of the second wave of selling, as one on-chain analyst who forecasted the last decline is now noting that on-chain data suggests miners may continue dumping their holdings.
Bitcoin Struggles to Gain Momentum Following $30,000 Rebound
At the time of writing, Bitcoin is trading down just over 4% at its current price of $33,800. This marks a notable decline from overnight highs of $36,500.
The crypto set these highs following yesterday’s dip down to $30,000. The cryptocurrency is now trading squarely between these two levels.
This may represent a new trading range for the crypto, although it remains unclear as to whether or not bulls will be able to guard against a break below its support.
On-Chain Analyst: BTC Miners Could Spark the Second Wave of Selling
While sharing his thoughts on where Bitcoin will trend next, one on-chain analyst explained that he is now watching for a deeper selloff.
He notes that miners have yet to stop selling and could absorb any buy-side support from retail investors.
“Nothing has been changed since yesterday. Miners are selling, no significant stablecoin inflows, no Coinbase outflows, and 15k BTC flowed into exchanges since yesterday. We might have second dumping.”
Image Courtesy of Ki Young Ju. Source: BTCUSD on TradingView.
If $30,000 continues being defended as key support, it could allow for Bitcoin to see significantly further mid-term upside.
Featured image from Unsplash. Charts from TradingView.