At Extreme Investor Network, we provide cutting-edge analysis and insights into the stock market, trading, and all things related to Wall Street. Today, we’re diving into the world of Bitcoin and its impact on the market as we explore the relationship between Bitcoin price and miner reserves.
As of July 30, Bitcoin miners held a total of 1.98 million BTC in reserves. Fast forward to September 12, and we see that the miners have significantly decreased their balances to 1.89 million BTC. This represents a reduction of over 90,000 BTC in just 45 days, amounting to a staggering $5.2 billion worth of newly-mined BTC sold off by miners during that period.
This selling frenzy by miners has put pressure on Bitcoin’s short-term market supply, making it challenging for the cryptocurrency to break above the $60,000 resistance level. Additionally, when this large-scale sell-off coincides with a spike in Hashrate, it could indicate more bearish pressures on the horizon.
Looking ahead, without a significant increase in BTC prices, more miners may find themselves unprofitable in the coming weeks, potentially leading to further sell-offs and downward pressure on the market.
In terms of price forecasting, Bitcoin’s short-term momentum remains bullish, with a recent surge of 11.5% this week. However, if the all-time high Hash Rates continue, it could compel more miners to contribute to the $5.2 billion sell-off trend. This could potentially curb the next BTC price rally and cause it to underperform relative to other altcoins like SUI and TON.
Analyzing the Donchian Channel (DC) indicator, we see Bitcoin trading within a tight range, with an upper boundary at $64,998.01 and a lower boundary at $52,568.05. The price is currently near the upper band, hinting at a possible test of the $58,783.03 resistance level. However, if the price fails to break through this barrier, a retracement towards the $52,568.05 support may occur, especially if miner sell-offs intensify.
Stay tuned to Extreme Investor Network for more insightful analysis and updates on the ever-evolving world of cryptocurrency and the stock market. Make informed investment decisions with our expert guidance and comprehensive research.