Risk for Bulls: Bitcoin Miners Begin Aggressively Selling Holdings

Bitcoin’s price action as of late has been rather lackluster, with bulls struggling to hold it above $18,000 as selling pressure mounts Where the crypto trends in the mid-term should depend largely on the continued reaction to the support at $18,000 If the crypto is unable to hold above this level, it could bear witness […]
Bitcoin’s price action as of late has been rather lackluster, with bulls struggling to hold it above $18,000 as selling pressure mounts Where the crypto trends in the mid-term should depend largely on the continued reaction to the support at $18,000 If the crypto is unable to hold above this level, it could bear witness […]
  • Bitcoin’s price action as of late has been rather lackluster, with bulls struggling to hold it above $18,000 as selling pressure mounts
  • Where the crypto trends in the mid-term should depend largely on the continued reaction to the support at $18,000
  • If the crypto is unable to hold above this level, it could bear witness to some intense selling pressure that sparks a move down towards $17,000
  • There is some support at roughly $17,600 that some analysts are watching, but it remains unclear just how strong this will be
  • One on-chain analyst is also noting that there is a disturbing trend emerging amongst BTC miners
  • He notes that selling patterns amongst miners suggest that these integral players in the market are beginning to offload their holdings

Bitcoin and the rest of the crypto market have been caught in the throes of an intense bout of consolidation over the past 24-hours, which came about following a bearish breakdown.

Unfortunately for bulls, it does not appear that this will result in any breakout, as BTC is now drifting down towards its $18,000 support level that has held strong for the past few days and weeks.

One analyst is also noting that trading activity amongst miners is bearish, as many are beginning to offload their holdings rapidly.

Bitcoin Struggles to Gain Momentum as Selling Pressure Mounts

At the time of writing, Bitcoin is trading down just under 3% at its current price of $18,080. This marks a notable decline from its recent highs in the lower-$19,000 region set just a couple of days ago.

The break below $19,000 is what started this entire move lower in the first place, and until it is surmounted, there is a strong chance that serious downside is imminent.

$18,000 is the near-term support level to watch, as a break below this level could result in the crypto seeing a move down towards $17,600.

This On-Chain Trend Spells Trouble for BTC

One on-chain analyst explained in a recent tweet that there’s a strong possibility that Bitcoin will face further downside pressure in the near-term due to outflows from miners.

He notes that multiple major mining groups are beginning to offload massive amounts of the cryptocurrency.

“Obviously, miners are selling BTC a lot today. I’m still long, but this is not a good signal in the short-run.”

Bitcoin

Image Courtesy of Ki Young Ju.

Whether or not this trend persists in the days ahead should offer serious insights into where Bitcoin will trend next, as miners could spark a strong downtrend if they continue selling.

Featured image from Unsplash.
Pricing data: BTCUSD on TradingView.