After I was turned down for $93,000, Bitcoin [BTC] faced intense downside pressure and reached a low of $83,000 before recovering slightly.
At the time of printing, BTC traded at $86,564, up 0.7% on the daily charts, but down 1.06% on the weekly charts.
Amid this increased market volatility, major entities, including miners, are coming forward to close their positions.
A Satoshi-era Bitcoin miner moves 50 BTC
According to Onchain lens, a Satoshi-era wallet moved 50 BTC, worth about $4.33 million, to five new wallets. The whale moved after being inactive for more than fifteen years.
Source: Onchainlens
When dormant wallets move, there are usually two main reasons. The most common interpretation is preparation to sell and realize profits.
If sold, it will add to the already depressed market, although the amount of Bitcoin moved will remain minimal.
The other reason for such a move is to reorganize or secure wallets, which indicates the need to upgrade the security infrastructure.
Bitcoin Miners Capitulate Amid Long-Term Downtrend
With BTC in a prolonged slump, miner revenues have plummeted, as evidenced by the Puell Multiple. According to Checkonchain, this statistic has dropped to 0.7 at the time of writing.
At such low levels, this suggests miners’ revenues are 30% below the long-term average, prompting them to look for revenue elsewhere to fund operating costs.
Source: Checkonchain
As a resultminers have turned to aggressive selling.
On December 1, when BTC fell to $83,000, most miners panicked and sold 8.3,000 BTC. When miners turn to aggressive selling, it signals greater financial pressure, especially as BTC prices fall.
Source: CryptoQuant
Historically, the group’s increased sales activity has preceded lower prices, especially when this coincides with limited market liquidity.
A rebound or more losses in prospect for BTC?
According to AMBCrypto, Bitcoin is under intense downward pressure from all market players, including miners. As a result, BTC has fallen below the 20, 50, 100, and 200 day moving averages, indicating strong bearish control in the market.
At the same time, the DMI index has remained largely negative, indicating strong downward momentum.
Source: TradingView
These market conditions together make BTC vulnerable to further losses. So, the selling pressure continues and BTC could fall again towards the $83,000 support level.
To reignite upward momentum and signal a trend reversal, BTC needs a daily close above its EMA20 at $91582. A close here will prompt bulls to target the EMA50 at $98,725.
Final thoughts
- Continued mining selling and bearish technical signals suggest Bitcoin remains vulnerable to retesting the $83,000 support.
- A decisive daily close above the EMA20 at $91,582 could mark the start of a potential bullish reversal.