Bitcoin’s Value Under Pressure as Miners Reduce Reserves
In recent news, it has been reported that Bitcoin miners have been putting pressure on the popular cryptocurrency since January 21, 2023. The reduction of their reserves has caused a local downward correction, and the pressure has only intensified since March 1, 2023. This development has been tracked and analyzed by CryptoQuant, a leading cryptocurrency data analytics firm.
According to CryptoQuant, if this miner pressure continues to increase along with other factors, Bitcoin may drop to either $19,500 or $16,600. This is because there is a volume gap between these levels, making it challenging for Bitcoin to find a local bottom in intermediate zones. While this may come as a cause for concern for some investors, it’s worth noting that long-term holders have not been significantly affected by this development.
The spent output of bitcoins from different age bands has shown that long-term holders have not been moving their assets. Instead, short-term holders have continued their selling pressure. However, the profitability trend of Bitcoin has been the main reason for this selling pressure to decrease. If Bitcoin continues to show profitability in the upcoming months, these holders may shift their views to long-term.
It’s important to note that while the miner pressure may be causing some volatility in Bitcoin’s value, it’s not the only factor affecting the cryptocurrency’s performance. Other factors such as market sentiment, regulatory changes, and technological developments may also have an impact. Therefore, it’s essential to keep an eye on all these factors to gain a comprehensive understanding of the market and make informed investment decisions.
In conclusion, while the recent miner pressure on Bitcoin may have caused a local downward correction, long-term holders remain firm, and short-term holders’ selling pressure is decreasing. As always, investors should remain vigilant and monitor all market factors to make informed investment decisions.
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