Currently, overall cryptocurrencies in the realm of digital assets are experiencing neither bullish nor bearish trends but seem to be struggling to gain momentum. Amid this, a prominent trader and analyst recently made a post on X (formerly Twitter) that we may witness a price drop in Bitcoin as miners are in selling mode.
Bitcoin miners offloaded $445.8 million worth of BTC
On January 17, 2024, according to Ali and earlier data shared by CryptoQuant on X, the rapidly surging cryptocurrency industry is facing a massive sell-off. The data also highlights that Bitcoin miners have significantly offloaded over 10,600 Bitcoins worth around $455.8 million in the last 24 hours.
Furthermore, the data indicates that BTC miners have consistently offloaded their holdings since December 27, 2023. This suggests they might expect the outcome following the approval of the spot Bitcoin Exchange Traded Fund (ETF). The cryptocurrency community had expectations that the approval of a Bitcoin ETF would lead to a future increase in the price of Bitcoin.
In addition to miners’ activity in Bitcoin, other factors supporting this scenario include significant outflows from the Grayscale Bitcoin Trust. According to a recent report by Todayq News on January 17, 2024, GBTC experienced more than $1.1 billion in outflows in the last three days. Bloomberg ETF expert James Seyffart also predicted that on January 17, 2024, we might see an additional outflow of around $594 million from GBTC.
Bitcoin Price and its technical analysis
These are the current reasons Bitcoin is struggling to gain momentum. However, Bitcoin is currently trading near $42,600, and in the last 24 hours, it experienced a 0.8% negative movement. Looking at Bitcoin over a longer period, in the last 30 days, it has only experienced a 4% upside momentum.
Additionally, In the past 24 hours, 41,516 traders were liquidated, the total liquidations came in at $111.84 million. The largest single liquidation order happened on Binance – BTCUSDT value of $7.32 million.
According to expert technical analysis, Bitcoin, after making higher highs and higher lows, recently breached its recent higher low and took support from the 50EMA (Exponential Moving Average). However, on a weekly time frame, Bitcoin seems to be consolidating in a tight range between $40,000 and $44,400 near its resistance level.
A significant move in Bitcoin is expected after the breakout or breakdown of this recent consolidation. If a breakout occurs, we may see bullish momentum up to $66,500, or if a breakdown occurs, bearish momentum may be observed until the $35,000 level.
