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


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

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. 

Author: Nivesh Rustgi
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 Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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Nivesh Rustgi 1180 Articles
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 Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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