- Market indicators showed that the bulls were still ahead of the bears.
- But the selling pressure on BTC increased, which could cause problems.
Bitcoin [BTC] miners are sending record amounts of BTC to exchanges. As exchange inflows increase, the likelihood of BTC witnessing a price correction increases.
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Glassnode’s latest tweet revealed that BTC miners increased selling pressure on the coin. According to the tweet, BTC miners sent a record $128 million to exchanges, equivalent to 315% of their daily earnings.
Historically, such episodes have been followed by a price correction in the value of the king of cryptos. Is BTC therefore waiting for another price drop in the coming days?
As miners continued to sell their holdings, BTC supply distribution turned bearish. According to Santiment’s chart, BTC’s supply on exchanges was approaching its off-exchange supply. If the former reverses the latter, it would mean that selling sentiment is dominant in the market, which could cause the price of BTC to fall in the coming days.
Source: Sentiment
The bulls are still leading
A look at BTC’s daily chart revealed that the bulls were ahead of the bears. This was evident in the Exponential Moving Average (EMA) ribbon, as the 20-day EMA was well above the 55-day EMA. BTC’s MACD also complemented the EMA ribbons as it was bullish.
However, Bitcoin’s Money Flow Index (MFI) was in an overbought position, which can cause panic among investors and motivate them to sell their holdings. In addition, the Relative Strength Index (RSI) registered a downtrend and headed south. This suggested that the possibility of a BTC price drop cannot yet be ruled out.
Source: TradingView
Are the miners to blame?
from CryptoQuant facts revealed that miners were still selling moderate amounts of BTC, as evidenced by BTC’s Miners’ Position Index (MPI). BTC’s Puell Multiple pointed out that miner earnings were in a moderate range, compared to the annual average.
However, the miners are not the only ones to blame, and investors in general also sold BTC for a profit, as suggested by the red aSORP.
Read From Bitcoin [BTC] Price prediction 2023-24
In addition, net deposits on exchanges were also high compared to the past seven days, further proving that the coin was under tremendous selling pressure.
In the past 24 hours, the price of BTC has dropped marginally. At the time of writing, it was trade at $30,338.28 with a market cap of over $589 billion.
Source: CryptoQuant