Bitcoin Market Update: BTC/USD may be on the verge of the abyss as miners start to cash out
|- Bitcoin miners have started to transfer their coins to the exchanges.
- If $11,100 gives way, the sell-off pressure will increase, the next focus on $10,300.
Bitcoin touched $12,000 earlier this week and once again failed to hold the ground. The price of the first digital asset dropped as lo was $11,100, before moving back inside the recent range. At the time of writing, BTC/USD stays marginally above $11,300 that served as channel support for the coin since the beginning of August. Notably, Bitcoin's dominance plunged to 56.4% as lots of minor coins have been gaining ground recently on a buzz around DeFi projects.
Bitcoin miners get ready to sell their coins
According to the stats provided by the on-chain data provider CryptoQuant, Bitcoin miners have been moving large amounts of BTC to cryptocurrency exchanges.
Miners are moving unusually large amounts of #BTC since yesterday. #Poolin, #Slush, #HaoBTC have taken the bitcoins out of the mining wallets and sent some to the exchange.
the data on BTC flows to and from miner wallets help to evaluate the circulating supply. Also, they may be indicative of the upcoming price movements as massive outflows from miners' wallets to the cryptocurrency exchanges may eventually result in the increased selling pressure.
Naturally, miners tend to sell their coins as they have bills to pay their bills. Those sales are easily absorbed by the market, but once they start dumping their coins in large numbers, the market will feel the pressure.
BTC/USD: The technical picture
On the daily chart, the BTC/USD price is supported by the area of $11,100-$11,000, which incorporates the daily SMA50. This barrier has been verified on several occasions since the beginning of August and turned into a formidable support area that has the potential to stop the sell-off and trigger the next bullish wave.
BTC/USD daily chart
Miners sending their proceeds to the cryptocurrency exchange accounts in order to cash out may serve as a catalyst for the sell-off, and if this is the case the next support of $10,300 reinforced by daily SMA100 will come into focus.
On the other hand, a sustainable recovery above $12,000 will negate the bearish scenario and bring more bulls to the market. However, as the FXstreet previously reported, BTC may have a hard time pushing through $12,000.
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