Bitcoin Price Drops to $50,000, Miner’s $1.2 Billion Sell-Off Responsible
The price of Bitcoin experienced a significant fall in the early hours of today, dropping from its initial $64,000 on July 25. The coin dropped by 7% to hover around the $50,000 price mark. Earlier in the week, Bitcoin traded above $68,477 until the euphoria of the Bitcoin miners selling their assets reached the public, thus triggering a pushback in the coin’s price.
Bitcoin and the rest of the cryptocurrency industry have been enjoying a robust market situation since July 5, a phenomenon linked to some viable macroeconomic indicators in the United States. Analysis from the June 2023 Consumer Price Index (CPI) report shows an increased demand for risky assets, including cryptocurrencies.
This price rally grew on July 22 and was linked to the news of the Ethereum ETFs, as well as the withdrawal of President Biden from the United States presidential race. This also positioned all Trump memecoins in a better position for a major price increase.
Chart Shows Bitcoin Price Retracting by 7%, Bitcoin Proposes $70,000
The clout surrounding the bullish trend contributed immensely to Bitcoin’s previous positive performance, increasing by 28% from $53,540 on July 5 to $68,477 as of July 22 – a 17-day price movement. Bitcoin’s price level of $68,477 is its highest trend in 30 days, starting from June 10, 2024.
In connection with this development, bull traders have staged a long position valued at more than $1 billion, getting ready for the proposed $70,000 price breakout. The available chart, as published on The Crypto Basic platform, explained that the price of Bitcoin is retracting by 7% from its initial all-time high of $68,477 as of July 22, after dropping significantly to $63,802 on July 25.
Many cryptocurrency traders who bought Bitcoin at the height of the selling frenzy are currently storing up the unrealized gains, which went up some two weeks ago. Bitcoin miners, in the recent selling trend, have started trading in a bearish manner.
Bitcoin Miners Hold 1.90 Million BTC, Doused Market Supply
Analysis from the chart by the Miner’s Reserves platform stated that the drop in the Miner’s Reserve is evidence that there is presently a selling trend, and it is responsible for the negative trend in the price of Bitcoin. This happened on July 23, the same time when the Ethereum ETF trend had gone widespread and was triggered by the announcement of the launch.
Bitcoin miners are cumulatively holding 1.92 million units of Bitcoin in their archives, which have been in their possession since July 15. This is also a reflection of the 20,000 units of Bitcoin that have been sold off in the last ten days.
According to the available records, the 20,000 units of Bitcoin sold by miners have drastically doused the market supply of Bitcoin by $1.28 billion. It also discouraged new prospects from entering the market, with the perception that the billion-dollar selling trend by Bitcoin miners could negatively affect their short-term gains.
Miners Take Advantage of New Investor’s Interest, SAR Indicator Explains
A freelance market watcher, Ibrahim Ajibade, is blaming the recent price drop on both the miners selling their Bitcoin holdings and traders locking their profits. Bitcoin miners have started leveraging the new investor’s interest, which they have rekindled to execute a big sellout.
Ajibade suggested that this trend has the propensity to shift the entire market towards the bearish trend, hence causing Bitcoin to face a significant price drop in the long run. According to the most recent Parabolic Stop And Reverse (SAR) indicator, there’s a prospective downward trend waiting to happen.
This is while the Balance of Power settles at -0.76, hence reintroducing a bearish sentiment at -0.76 as of press time. However, for Bitcoin to reclaim its former position and stop the ongoing decline, it must reverse its former resistance level of $66,000.
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