Bitcoin (BTC), which has been struggling to recover its bullish momentum, is currently in a downward spiral.The currency is still in the consolidation phase, just below $60,000 as a crucial support. The largest cryptocurrency, despite reaching an all time high just three months earlier, saw a drop to $59,500 due to the increased pressure of miners.
BTC Selling Spree
It is still ongoing miner capitulationThis is the first time that this effect has been observed. It was last seen in the summer of 2012, just before FTX’s implosion.
Ali Martinez, a crypto analyst, noted that Bitcoin miners are stealing bitcoins. have sold More than 2,300 BTC were sold in the last three days for a total of $145 Million.
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Miners’ pressure to sell adds to recent tensions BTC sales by the US and German governmentsThe market is under downward pressure, and prices are still within the range between $60,000.0-$70,000.
In various transactions, it is notable that addresses associated with the German and US government have sent 737 millions worth of BTC, including to Coinbase Bitstamp and Kraken.
As well as the selling pressure Market observers predict that as the pressure from government and mining subsides, BTC’s price could recover, similar to the pattern seen in the period following Halving, when new highs were often reached.
Bitcoin Price Outlook
Market expert Scott Melker points out The market could be approaching a key signal. If a candle daily closes under the level of $60,300, this may lead to a divergence in favor of the bulls.
The daily RSI would have to move out of the oversold area, as it did last August around the $26,000 price.
Melker stresses the importance of a closing below the level mentioned, followed by a clearly upward movement in the RSI. lower low. The RSI would have to move significantly lower in order for it to be below its previous level of June 24th.
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Andrew Kang is a crypto analyst who highlights the potential significance of losing the Bitcoin four-month range, drawing comparisons with that observed in 2021 after a parabolic rally for BTC and other altcoins.
Kang notes The fact that more than $50 billion is being leveraged in the crypto market at the moment, combined with the 18-week long period of consolidation without any extreme washing outs like the one seen in the bull run from 2020-2021, makes it a very interesting time to be in the cryptocurrency market.
Kang also suggests that the initial estimates in the low $50,000s were likely too conservative and could have been lowered to $40,000s.
A pullback of this magnitude would have a significant impact on the market. It may take several months for the price to move in a downward or choppy direction before an upward trend can be established.
BTC, at the time this article was written, had recovered to $60,350 after a brief drop below the crucial level for future upward movements.
In a monthly price frame, the largest cryptocurrency on the market is recording a 12 percent decrease.
Chart from TradingView.com, image from DALLE
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Source: www.newsbtc.com