Amid the market volatility, Bitcoin is showing strong stability holding the $30,000 threshold. This trend is mainly driven by Fidelity’s strategic decision to file a Bitcoin ETF, which could potentially catalyze an uptrend. Additionally, forecasts from a Bloomberg analyst suggest that BlackRock, the world’s largest asset manager, may soon receive SEC approval for its Bitcoin ETF and improve Bitcoin’s market position. However, as Bitcoin rises, it encounters resistance with significant selling pressure at higher levels, putting traders in a confusing zone.
Recent Bitcoin Selling Pressure Worries Bulls
In the Bitcoin mining industry, recent anomalous trends have sparked the interest of cryptocurrency enthusiasts. Notably, there has been an increase in exchange transactions, with Bitcoin miners transferring unprecedented volume to exchanges.
Since June 15, a massive exodus of assets from exchanges by miners has been observed, with a total of 33,860 BTC transferred to derivatives exchanges. However, around 8,000 Bitcoins apparently disappeared permanently from miners’ wallets. This activity is generally interpreted as a significant increase in selling pressure on Bitcoin, often seen as a strong bearish indicator.
Glassnode, an on-chain analytics platform, reported in a tweet that revenue from Bitcoin miners sent to exchanges has reached an all-time high. The platform highlighted ‘extremely high exchange interaction’, with Bitcoin miners transferring a record $128 million to exchanges over the past week, equivalent to 315% of their daily revenue .
During the 2021 bull run, there were several instances of increased miner revenue being sent to exchanges as miners capitalized on the profits. A large inflow was also seen at the end of 2022 when the markets bottomed out in the cycle.
However, the recent surge greatly exceeds previous peaks. Typically, miners transfer profits from BTC to exchanges when they intend to liquidate their holdings to cover expenses and secure profits. This translates into selling pressure when Bitcoin hits a resistance level or a new high.
Will the price of BTC break below $30,000?
Bearish traders are vigorously protecting the $31,000 level, while bullish traders are preventing the price from falling below $30,000. This suggests that buying activity is prevalent at lower levels, while selling takes place at higher levels. As of this writing, the price of BTC is trading at $30,330, down more than 1.3% from yesterday’s rate.
A slight consolidation near $30,800 suggests that bullish traders are not yet keen to take profits, anticipating further upward movement. The ascending 20-day EMA at $30,464 and the Relative Strength Index (RSI) approaching overbought territory suggest that the path of least resistance is tilting higher.
If bullish traders push the price of BTC past the $30,800-$31,400 resistance zone, this would signal the start of the next uptrend phase. Although there is a minor resistance at $32,300, this may not significantly hamper the price. Breaking above this resistance could pave the way for a push towards $40,000.