- Bitcoin miners sold $8.2 billion worth of BTC amid recent ETF approvals, indicating a potential bearish sentiment.
- There was a decline in ETF demand this week, with only 4,680 BTC acquired compared to the previous week’s 17,480 BTC.
Following the recent legalization of Bitcoin ETFs, Bitcoin miners have carried out significant sell-offs, transferring 700,000 BTC to Over-the-Counter (OTC) exchanges, according to Cryptoquant. The $35 billion transfer has caused some market participants on X to pause and consider the reasons behind this large-scale shift.
OTC addresses are typically connected to miners, but they can also benefit other significant holders known as “whales,” as explained by Ki Young Ju, CEO of Cryptoquant. With miners potentially profiting from the recent 28% gain in Bitcoin’s price over the previous month, this trend points to a possible shift in sentiment.
The price of Bitcoin has increased significantly over the past three years, peaking at $52,985 on February 20, which corresponds with the miners’ profit margins. But in the following weeks, it became more difficult to maintain momentum, and worries surfaced when the price of Bitcoin fell to a weekly low of $50,664 on February 21.
Analysts blame the recent volatility on on-chain data that shows miners selling $8.2 billion worth of Bitcoin in the last 30 days as a result of profit-taking. Given that miners control roughly 10% of the entire circulation supply, this huge sell-off indicates a possible pessimistic mood among a significant bloc of stakeholders.
ETF Inflows Stumble, Adding Pressure to Bitcoin’s Price Rally
The surge in the price of Bitcoin during the first half of February was directly associated with unprecedented inflows into Bitcoin ETFs. Meanwhile, headwinds for the expected increase have been generated by a decline in ETF demand this week, and miners were ramping up their selling in advance of the impending halving event.
TheBlock’s on-chain flow chart shows that the buying tendency of Bitcoin ETFs has decreased by 73%, with only 4,680 BTC acquired between February 19 and February 22, as opposed to the 17,480 BTC that was accumulated the week before. This drop in ETF demand and the sell-off by miners has slowed Bitcoin’s rise toward a new all-time high above $60,000. This is in accordance with positive forecasts.
Price Forecast: Navigating Key Support Levels
With the demand for ETFs declining and miners selling more of their holdings, analysts predict that if the psychological $50,000 barrier is broken, Bitcoin may find support at $48,500. This prediction gains support from the Bollinger Band technical indicator, which identifies the 20-day Simple Moving Average (SMA) at $48,560 as a critical support level. This becomes crucial in stopping the downhill spiral from continuing.
According to the projection, a consolidation or pullback phase may ensue if Bitcoin regains bullish momentum and reclaims the $53,000 mark. Potential resistance may arise around $55,830. It is recommended that traders place short-term stop-loss orders at about $45,000 to mitigate risk in the event that the market breaks below the $48,560 support level. On the other hand, bullish traders can consider placing take-profit orders at $55,000 to profit from any future increases. It is worth noting that Bitcoin is currently trading at $51,569.94, with its volume highlighting a 5% increase.
