Bitcoin
Here’s Who’s Selling Bitcoin (BTC) Right Now, Driving the Price Down on U.Today
U.Today – It appears that Bitcoin’s selling pressure has spiked again as the first cryptocurrency has fallen below $65,000 with over $140 million liquidated. However, the main source of selling pressure may not have been so obvious.
Recent price action indicates that Bitcoin is having difficulty maintaining its position above important support levels. With a break below the EMA 50 and an approach to the EMA 100, the daily chart shows an extreme decline. There is also increasing bearish momentum indicated by the RSI.
The fact that Coinbase (NASDAQ:) is the source of the selling pressure is crucial. The Coinbase Premium Gap, a measure that compares the price of Bitcoin on Coinbase Pro to that of other exchanges, is significantly negative, suggesting that Coinbase is currently executing orders from institutional investors who are willing to sell their holdings.
The miners’ long period of capitulation is also clarified by Willy Woo’s analysis. As indicated by the Bitcoin Hash Ribbons, which show periods of stress and recovery for miners, we are currently experiencing a record amount of miner capitulation. Woo says that when the hash rate starts to rise again and weak miners leave, Bitcoin usually recovers.
In the same vein, the volume of large dollar transactions has declined sharply, suggesting that key players are reducing or selling their holdings. The Bulls and Bears indicator, which indicates a preponderance of bearish addresses, further highlights the bearish sentiment. It appears that more investors are selling rather than buying as the gap between bullish and bearish addresses has widened.
Combining this data suggests that there are multiple sources of selling pressure. With huge amounts of Bitcoin being sold on the platform, Coinbase appears to be a big driver. Furthermore, as miners sell their stakes to pay operating expenses, the prolonged phase of miners’ capitulation intensifies selling pressure.