Bitcoin [BTC] Drops to $9350. Did Miners Trigger the Sell-Off? Analyst Suggests

24 Jun, 2020 Updated 24 Jun, 2020

Contributor

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com

Read full bio

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Bitcoin [BTC] price drops 2.7% as it broke below $9600 support despite bullish sentiments and increase in Gold the last day.

The price of Bitcoin [BTC] at 12: 30 hours UTC on 24th June 2020 is $9355. According to an independent analyst, this could have been brought about by the sell-off from miners.

bitcoin-miner-outflow — Bitcoin Miner Out Flow Chart (Source: Tweet)

Cole Garner, on-chain and market analyst tweeted,

Big spike in miner’s outflows overnight. Second biggest since #Bitcoin hit $10k. I’m expecting a whole lot of selling, starting real soon.

According to Garner, the Bitcoins did not flow into exchanges, rather seemed like an OTC trade.

An update from Crypto Quant indicates over $68 million in outflows for two pools (HaoBTC and Poolin) since yesterday. The daily average outflow from miners has dropped since halving. However, it is now witnessing massive spikes on isolated days which seems to be coming from large miners.

Recovery after Halving

Nevertheless, the hash rate has been on recovery since the halving has approached the buy signal, despite the mining difficulty increase earlier in the month.

btcusd chart on gemini — BTC/USD 1-Day Chart on Gemini (TradingView)

However, as mentioned earlier, the Chinese miners are experiencing floods at the moment, which is favourable for cheap hydroelectricity power. The end of the season could lead to decreased profitability and hash rate.

Currently, the price seems to be holding to the 50-Day EMA as support at $9222 as support. Mati Greenspan, financial analyst and founder of Quantum Economics tweeted,

Been wondering when #bitcoin might see its 200 DMA and was considering support around $8,000. It seems like the DMA is rising lately and with it our next support line.

The 200-Day Moving average is at $8292. In case of further downfall, the market will be critically looking for support above $8000.

Do you think that complete mining capitulation is over or sell pressure is still intact? Please share your views with us.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

BestChange

Instant Currency Exchange at BestChange with Ease

Compare Rates Across 1000+ Exchanges
Access 250+ Cryptocurrencies & Pairs
Save Time with Real-Time Price Tracking
Trusted & Verified Exchange Listings

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.