Bitcoin
Bitcoin Plunges Below $11,000 as Selling Pressure from Miners Ramps Up
Cole Petersen | Sep 03, 2020 | 18:00
- After facing some slight turbulence yesterday, Bitcoin incurred a massive rush of selling pressure today that sent its price reeling down to lows of $10,700
- This movement came about in the form of a sharp selloff following a prolonged bout of sideways trading within the lower $11,400
- Analysts are now noting that the market is now at serious risk of seeing further downside
- This comes as multiple large BTC mining pools begin offloading their holdings concurrently, which is likely the main reason behind this movement
Bitcoin and the aggregated cryptocurrency market have seen some mixed performance in recent weeks, with the benchmark digital asset rallying as high as $12,200 just a few days ago before consolidating within the lower-$11,000 region.
Analysts are conflicted as to where the market may trend in the near-term, as some are noting that the latest decline struck a major blow to its technical strength.
This comes as selling pressure from miners heats up, which is a traditionally bearish sign that indicates downside may be imminent.
Bitcoin Shows Signs of Weakness as It Reels to $10,700
At the time of writing, Bitcoin is trading down 5% at its current price of $10,850.
This marks a slight rebound from its daily lows of $10,700, but it remains well off of its recent highs of $12,200 that were set just a few days ago.
Where it trends in the near-term should depend largely on whether or not bulls can catalyze a move back up to $11,000. If surmounted, this level will be crucial support for BTC.
BTC Miners Place a Massive Amount of Selling Pressure on BTC
The likely suspect behind this latest selloff is miners, as data from CryptoQuant shows that some of the largest pools have been selling their holdings in tandem.
“Miners are moving unusually large amounts of BTC since yesterday. Poolin, Slush, HaoBTC have taken the bitcoins out of the mining wallets and sent some to the exchange,” the analytics firm noted.
Image Courtesy of CryptoQuant.
The CEO of the firm spoke about this data in a recent tweet, noting that this coordinated selling is an “unusual situation” that has led him to reduce his long exposure to BTC.
“I did knife catching yesterday and longed, but closed the position an hour ago. I think these miner outflows are a pretty unusual situation.”
Where the market trends next may depend on how intense this selling pressure is in the near-term.
Featured image from Unsplash. Pricing data from TradingView.
