Miners Sell Their Bitcoins – Analyst Says It Could Free Fall If It Can’t Hold These Levels!

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Bitcoin is trading at just over $42,000 today, following a 3% drop it experienced the other day. However, analysts say we may face a larger decline in the coming weeks as more traders continue to take profits and exit after liquidating their positions. Miners are also not helping much in curbing this decline by selling most of their newly minted coins. The data shows that miners’ BTC positions are net negative for the first time since November.

At the time of writing, Bitcoin is trading sideways, up 0.23%, changing hands at $42,822. Today, BTC managed to rise up to $ 43,000 and made a slight decrease below $ 42,000. Since it was the weekend, the trading volume of the cryptocurrency also decreased by 20 percent to $ 20.2.

According to a report by Delphi Digital, the top cryptocurrency is approaching the intersection of daily, weekly and monthly resistances. According to the firm’s analysts, this points to a possible near-term price cap.

As such, it provides “a logical place to expect profit-taking/risk reduction activity to occur due to the intersection of resistance zones and the speed and magnitude of movement from recent lows.”

Analysts believe it is critical for BTC to hold the support above $40,000 otherwise it risks falling to the next support level of $38,500. So if it breaks this support level, BTC will go into free fall.

Crypto Ed NL, a popular trading expert on Twitter, also defends this prediction, saying he expects a move towards $40,000, saying that if it drops anywhere below this level, the bears will take control.

Bitcoin miners sell their crypto

The news advocating bearish sentiment doesn’t stop there, data show that Bitcoin miners are selling most of their newly minted coins. This shows that miners are not so sure that Bitcoin will chart higher.

Glassnode data shows that a metric that tracks miners’ BTC holdings turned negative for the first time since November last year. Glassnode believes that this means smaller and less efficient miners. short-squeeze(short position compression) and it’s quite possible that this trend will worsen in the coming weeks, he says.

To put this in context, Bitcoin miners continued to increase their positions even when the price dropped to $30,000 in January.

But public miners are not worried about this trend. Marathon Digital, led by Fred Thiel, is one of them, for example, and its shares are up 40 percent since the crypto crash in January. A company spokesperson explained to Bloomberg why they weren’t selling, saying:

“We started hodling in October 2020 and haven’t sold a single satoshi since then.”

Sue Ennis, head of investor relations at Hut8 Mining, another publicly traded miner, also said:

“We believe in Bitcoin. Some miners sell Bitcoin or use it to pay for their expenses. We are “holding” ours, and even planning to hold it for a very long time.”

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.


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