Miners Exert Pressure Leading to Bitcoin Price Drop

Bitcoin (BTC), the leading cryptocurrency, continues to undergo a correction period as the price falls below the $66,000 mark. While there are many factors contributing to this price drop, the behavior of miners may be more negatively affecting cryptocurrency prices than investors initially thought.

Current situation of Bitcoin miners

BTC has shown a downward trend in recent days, falling more than 5% in the past week. In just the last 24 hours, BTC price continued to adjust by 5%. Currently, BTC is trading at around $68,000 with a market value surpassing $1.2 trillion.

CryptoOnchain, a writer and analyst at CryptoQuant, released a report showing that BTC miners’ reserves have decreased. Miner reserves have dropped to their lowest level since April 2021, suggesting miners are selling their accumulated coins. The report emphasizes that this decline has become much stronger since the beginning of November, which may be one of the reasons why selling pressure in the market has increased. It also revealed that BTC net deposits on exchanges were higher than the seven-day average, which could indicate high selling pressure.

Statistical data shows a downward trend in BTC

• BTC’s aSOPR is on the decline. This information shows that many investors are selling at a profit at the time of writing.
• The leading cryptocurrency’s binary CDD also fell, showing that long-term investors are moving above the average of the past 7 days.
• Coinbase Premium also shows bearish market sentiment, especially selling sentiment among investors in the United States.

Related: Bitcoin ETF Registers Weekly Inflow of $2.5 Billion

Expert analysis of Bitcoin’s daily chart shows that there is a high probability that the price will continue to decline. According to Bollinger Bands, BTC price has dropped below the 20-day simple moving average (SMA). The relative strength index (RSI) recorded a sharp decline, which could signal a continuation of the bearish trend.