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Selling pressure from miners, ETF holders, and Strategy is building as BTC fights for $64K.
ByJordan Lyanchev
After several days of trading mostly sideways, or even charting new losses, bitcoin’s price finally headed in the opposite direction at the start of the new business week, topping $64,500 for the first time in 7-8 days.
However, this rather minor rally has been jeopardized long before it had the opportunity to grow into something more spectacular, as the selling pressure has mounted on several fronts. There’s also a dark horse outside the on-chain data, showing another threat.
Bull Trap in the Making?
Starting with miners, popular analyst Ali Martinez outlined the growing concern within the community about the increasing selling pressure. The backbone of the Bitcoin network has been taking profits lately as BTC rose to $64,600 earlier. Data from <a href="https://xpertsstudio.com/us-unseals-25-count-indictment-in-165m-crypto-case/” title=”US Unseals 25-Count Indictment in $165M Crypto Case”>CryptoQuant shows that they have disposed of 1,648 BTC over the past ten days or so, which, according to the analyst, adds “roughly $106 million in potential selling pressure.”
Second, he listed the spot Bitcoin ETFs. As recently reported, investors gaining exposure to BTC through these financial vehicles withdrew almost $400 million worth of the cryptocurrency last week, in stark contrast to the over $850 million in net inflows the previous week.
Third, Martinez referred to Strategy’s recent behavior. The company has not only paused its BTC purchases indefinitely, but it has also made multiple sales over the past few months. Its total holdings have declined by more than 3,300 in just weeks.
The analyst noted that a worrisome portion of BTC’s supply has hit exchanges recently, as their balances have increased by 24,700 units over the past ten days. This means that $1.6 billion worth of BTC has increased the potential sell-side liquidity.
Lastly, he outlined the Coinbase Premium metric, which continues to be in the negative for well over three months now. Such a reading means that “BTC is trading cheaper on Coinbase than Binance, signaling weaker US demand or active selling from US-based participants.”
Source: cryptopotato.com