Why Bitcoin Is Falling: Is It Just Miners Who Are The Reason For The Decline In BTC?
What caused the decline in BTC?
The price of Bitcoin (BTC) began Tuesday with a drop and the price fell to the $ 30,000 band as miners continued to sell BTC. So what are the reasons behind Bitcoin's price decline and volatile movements?
Miners Sell Bitcoin
Funds diverted from mining pools continued to rise this week, data shows. Last week's price slump came as major outflows from F2Pool, the biggest pool, took place for several days. This time, however, smaller miner funds appear to be making an exit.
Although this data does not definitively indicate that miners are selling, it shows that mined BTCs are sent to various platforms for trading.
In addition, total outflows this week were down from last month, but still up from recent months, according to on-chain analytics source Cryptoquant.
Indicators In Stock Exchanges
In addition to miners and drops in the price of Bitcoin, there are also increases in the amount of Bitcoin sent to exchanges. Data compiled by On-chain tracking source Glassnode shows the amount of BTC invested in exchanges on Monday was about $ 108 million more than the amount of BTC drawn into wallets.
The fact that the amount of BTC sent to the exchanges has increased may indicate that people are preparing to take action in the direction of selling.
Resistance and supports
According to recent market assessments, the $ 35,000 band for Bitcoin has now returned to a serious level of resistance. At this point, it seems that investors want to sell BTC. However, analysts say that $ 27,000 is still trading as a strong support level.