Bitcoin remains in dire straits as the bulls stay off the shore. The token failed to regain $26,000 during the weekend, which was much expected and kept the market participants less hopeful of the upcoming trend. The global market cap also appears to be losing its grip, as a massive drop in trading volume recorded in the past 24 hours. Meanwhile, the BTC dominance is rising and heading strongly towards 48%.
So, does the current calm indicate the resurgence of a decent upswing or the preparation for another bearish move?
The price of BTC is closely trading along the lower trend line that it has maintained since the beginning of 2023. Even though the present levels display some strength, they may not continue to sustain themselves for long. The root cause could be the miner’s preparation to slash the BTC price lower ahead of the upcoming Bitcoin halving.
According to the data from Glassnode, the miners have sent a significant amount of BTC to the exchanges over the past week. The levels recorded are the highest in the past 12 months, at around $70.8 million, and the third largest of all. It is hardly $30.2 million less than the levels recorded during the primary bull market of 2021, which were around $101 million. This suggests the miners are about to accomplish a massive move that may directly impact the BTC price in the short term.
During the 2021 bull run, when the levels hit above $100 million, the BTC price dropped hard from the interim highs at $64,854 and tested the lows around $28,805 in less than 45 to 50 days. Therefore, now that the miners are again planning to mount significant selling pressure, the BTC price may soon land in deep trouble.
In such cases, new bottoms may also be speculated on, and hence the traders need to closely watch the price actions and act accordingly.
Source: https://coinpedia.org/price-analysis/bitcoin-btc-bottom-may-not-be-in-beware-of-the-ongoing-market-maneuvers/