After the 3% drop the previous day, Bitcoin is trading around $42,000 today. Analysts believe that in the coming weeks, we will be faced with a bigger drop as more investors sell and make gains. If BTC breaks the $40,000 support, we could go into a free fall. Cryptokoin.com is providing the details…
Bitcoin miners sell their crypto for the first time since November
According to a study by Delphi Digital, the leading crypto is approaching daily, weekly and monthly resistance convergence. According to the firm’s experts, this points to a possible price cap in the near future. As a result of the convergence of resilience zones and the speed and extent of progress from recent lows, it provides a “natural point to expect profit-taking/risk-reduction behaviour”.
Analysts follow $40k
BTC should keep the support above $40,000 or drop to the next support level, i.e. $38,500. The decline could deepen if BTC breaks this support level. “Crypto_Ed_NL” on Twitter agrees, noting that he looks forward to the move to $40,000. If the price drops below this level, bears will take over the market.
Bitcoin miners sell their rewards
Another bad In the news, research shows that Bitcoin miners are less optimistic about the future of the cryptocurrency, with the majority selling newly produced BTCs. According to Glassnode data, a statistic that tracks miners’ BTC holdings turned negative for the first time since November last year. According to Glassnode, this could be a clue that smaller, less efficient miners are being squeezed in and this trend will only continue in the coming weeks. BTC miners, for example, continued to increase their positions even after the price dropped to around $30,000 in January. Public miners, on the other hand, are not bothered by this development. Marathon Digital, led by Fred Thiel, whose shares have improved by 40% since the January crypto crash, is one of them.
Bloomberg shared that a company spokesperson said:
We started long-term holdings in October 2020 and have not sold a single satoshi since.
Sue Ennis, head of investor relations at Hut8 Mining, a publicly traded mining company, said:
We believe in Bitcoin. Bitcoin is sold or used by some miners to cover expenses. We ‘hodl’ or cling to ourselves.
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