- Miners were selling BTC to cover costs or secure profits, acting as resistance.
- A much stronger dip-buying was needed to absorb this pressure.
As a seasoned analyst with a decade of experience in the crypto markets, I’ve seen my fair share of rollercoaster rides. The recent selling pressure from miners is indeed a familiar sight, one that often presents both challenges and opportunities for savvy investors like myself.
The dance between optimistic investor attitudes towards cryptocurrencies and the selling actions by miners is a well-known pattern in crypto market cycles. Over the last few days, following Bitcoin [BTC] hitting an unprecedented peak of $93K, miners have been unloading their holdings to meet expenses or cash in on their gains.
Frequently, these occurrences offer chances for traders to sell Bitcoin short, as was seen just two days ago when the price dropped to $86K, resulting in a 3% decrease.
Despite some resistance, Bitcoin bulls managed to drive the price close to its all-time high once again, with BTC being exchanged at approximately $91,389 at the time of reporting.
From an economic standpoint, high liquidity in the market combined with miner selling creates an ideal “dip” buying opportunity for savvy investors. If they capitalize effectively, the market could absorb selling pressures, potentially setting Bitcoin up for a new all-time high.
Are miners slowing down BTC?
Bitcoin investors find themselves in a tricky situation, debating whether to cash out now or hang on for future gains. Given its current ‘risky’ status, such indecision is reasonable. A minor change could spark widespread market turmoil.
On the other hand, miners now encounter a distinct hurdle due to the latest halving event. This adjustment has diminished the miner’s reward to 3.125 Bitcoins, which makes it more difficult for them to manage operational costs and secure profits.
Consequently, due to a combination of demand and the pursuit of profits, miner reserves have reached an unprecedented low, with regular withdrawals mirroring patterns observed at prior peak moments in the Bitcoin market.
Source : CryptoQuant
Essentially, this means that if miners continue to sell their Bitcoins every time the price reaches a new all-time high (which occurred three times within ten trading days), it might slow down Bitcoin’s progress beyond $93K and potentially undermine a possible rapid increase towards $100K.
Despite the situation, it’s worth noting that there is a positive aspect: Tether has restarted minting fresh USDT tokens, which is a response to the increasing number of investors showing interest in Bitcoin following the election. This indicates a growing market demand and enhances liquidity levels.
Previously stated, greater liquidity implies more Bitcoin available in the market. Yet, should the retail market discover a lower price dip than $91K, it might place significant pressure on institutional investors and large Bitcoin holders.
In other words, what happens next could decide if Bitcoin manages to set a fresh all-time high prior to the weekend’s end.
Bitcoin needs fresh incentives for long-term growth
It’s not unusual that the cryptocurrency market is frequently influenced by speculation. Investors, or “bulls,” make their bets based on their predictions about potential future events, regardless of whether those events have actually occurred.
While the idea of the U.S. accumulating Bitcoin as a reserve has not yet been officially implemented, it’s still a significant point of interest for those optimistic about Bitcoin’s future, serving as a potential reason they might choose not to sell their Bitcoins.
One way to rephrase the given text while maintaining clarity and readability is:
Collectively, these elements have been instrumental in shielding Bitcoin from significant downturns. Nonetheless, they’ve not managed to avert small adjustments; in fact, Bitcoin dipped to around $86K quite recently due primarily to increased selling by miners. Consequently, surpassing $100K may prove challenging – there could be bumps in the road during this process.
Source : IntoTheBlock
For the last seven days, there’s been an ongoing positive trend in the transfers from major investors, yet it has shown a significant decrease. This implies that these substantial players might be adopting a more conservative and strategic approach.
Read Bitcoin (BTC) Price Prediction 2023-24
To ensure sustainable expansion in the long run, Bitcoin requires regular new rewards to prevent its significant investors from offloading their holdings. Some minor adjustments are unavoidable as speculative investors with less resilience exit the market.
Should bulls maintain their strength, Bitcoin (BTC) might reach a fresh all-time high (ATH) by the end of this week. Yet, achieving a price point above $100K could possibly take more time.
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2024-11-16 18:16