- Bitcoin has seen some turbulence throughout the day due to a hiatus below $ 40,000
- This level has long maintained as a support, but the lack of intense buying pressure during the day allowed bears to push it below this level
- Bitcoin is now sliding lower, with bulls not having firm control over the cryptocurrency’s price action
- A trader now notes that where the medium-term market trends are likely to depend on whether the crypto can shield itself from an intense short-term decline.
- While sharing his thoughts on where BTC could go next, one analyst offered a somewhat grim view
- He explained that miners appear to be selling in increased quantities, which could put significant pressure on the crypto
Bitcoin is currently trying to defend itself against an intense drop below USD 39,000, which turns out to be a mild level of support for the cryptocurrency.
The intensity and speed of the decline appears to be picking up steam after the sustained decline below USD 40,000. This used to be a strong level of support for the crypto.
An analyst now notes that the selling pressure from miners could put ongoing pressure on the price of Bitcoin and cause it to show a slight downward trend in the near term.
Bitcoin Collapses Below $ 40,000 After Pause
At the moment of writing, Bitcoin is trading just over 5% at the current price of $ 38,200. This marks a notable drop from recent highs of $ 41,500 that were lower than a day ago.
The early morning break of the cryptocurrency below $ 40,000 put serious pressure on the cryptocurrency and caused it to see a rapidly accelerating decline.
Unless it can hold $ 38,000 as support, chances are it will face further selling pressure in the near term.
Analyst: Sales pressure miner behind recent correction
An analyst explained in a recent tweet that selling pressure from miners appears to be behind this decline.
He notes that he falls short Bitcoin for now because of this trend among miners.
“Miner Position Index seems enough to make a local top. They sell BTC. I am going a little short to scalpe BTC in this bearish market in the short term. “
Image Courtesy of Ki Young Ju. Source: CryptoQuant.
In the coming days, investors should give serious insight into whether this outflow of miners will be enough to halt the upward trend.
Featured image from Unsplash. Price data from TradingView.