In the midst of market volatility, Bitcoin shows a solid stability by holding the $30K threshold. This trend is mainly boosted by Fidelity’s strategic move to file for a Bitcoin ETF, which could potentially catalyze a bullish trend. Furthermore, predictions from a Bloomberg analyst suggest that BlackRock, the world’s largest asset manager, may soon receive SEC approval for its Bitcoin ETF and improve Bitcoin’s market position. However, as Bitcoin ascends, it encounters resistance with significant selling pressure at higher levels, putting traders in a confused zone.
Bitcoin’s Recent Selling Pressure Worries Bulls
In the Bitcoin mining industry, recent anomalous trends have piqued the interest of cryptocurrency enthusiasts. Notably, there has been an uptick in exchange transactions, with Bitcoin miners transferring an unprecedented volume to exchanges.
From June 15, a mass exodus of assets from exchanges by miners has been observed, with a total of 33,860 BTC transferred to derivatives exchanges. However, around 8,000 Bitcoins have seemingly vanished from miners’ wallets permanently. This activity is generally interpreted as a significant increase in selling pressure on Bitcoin, often considered a strong bearish indicator.
Glassnode, an on-chain analytics platform, reported in a tweet that Bitcoin miner revenue sent to exchanges had reached an unprecedented high. The platform highlighted an “extremely high exchange interaction,” with Bitcoin miners having transferred a record $128 million to exchanges in the past week, equivalent to 315% of their daily revenue.
During the 2021 bull run, there were several instances of increased miner revenue sent to exchanges as miners capitalized on profits. A significant inflow was also observed in late 2022 when markets reached their cycle low.
However, the recent surge significantly surpasses previous spikes. Typically, miners transfer BTC profits to exchanges when they intend to liquidate their holdings to cover expenses and secure profits. This results in a selling pressure when Bitcoin touches a resistance level or new high.
Will BTC Price Break Below $30K?
Bearish traders are vigorously protecting the $31,000 level, while bullish traders are preventing the price from falling below $30,000. This suggests that buying activity is prevalent at lower levels, while selling is taking place at higher levels. As of writing, BTC price trades at $30,330, declining over 1.3% from yesterday’s rate.
A slight consolidation near $30,800 suggests that bullish traders are not keen on taking profits just yet, anticipating further upward movement. The ascending 20-day EMA at $30,464 and the relative strength index (RSI) nearing the overbought territory suggest that the path of least resistance leans towards the upside.
If bullish traders drive the BTC price beyond the resistance zone of $30,800-$31,400, it would indicate the commencement of the next uptrend phase. While there is minor resistance at $32,300, it may not significantly hinder the price. Surpassing this resistance could pave the way for a surge toward $40,000.
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