Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500
Highlights
- Bitcoin faced significant selling pressure, with miners offloading 1,200 BTC.
- Bitcoin OTC desk balances for miners surged by 54,000 BTC this month, hitting one-year high.
- nalyst Willy Woo warns that ongoing liquidations could push Bitcoin price down to $62,500.
Just before the much-awaited FOMC meeting, Bitcoin came under significant selling pressure with on-chain indicators showing that miners have been selling off their holdings aggressively. As of press time, the Bitcoin (BTC) price is trading 1.5% down at $67,400 levels with a market cap of $1.328 trillion.
Bitcoin Miner Capitulation Rises
CryptoQuant Head of Research Julio Moreno has reported significant signs of Bitcoin miner capitulation. On Monday, miners sold 1,200 Bitcoin, marking the largest daily miner selling volume since late March.
These transactions were conducted over-the-counter (OTC), not on exchanges, indicating that miners are opting for large, discreet trades that do not immediately impact market prices. This month, Bitcoin OTC desk balances for miners have surged by 54,000 BTC, reaching a year-high.
The increase in Bitcoin transfers to OTC desks suggests that miners may be preparing to sell more Bitcoin, possibly due to concerns over potential price drops or an immediate need for cash. Following the recent halving, many mining companies and individual miners have indicated that they cannot maintain profitable operations, leading to a potential exodus from the industry.
BTC Price Drop to $62,500?
Bitcoin analyst Willy Woo has indicated that recent liquidations may trigger further downward momentum for Bitcoin prices. Woo suggests that if the next wave of long liquidations continues to fuel this trend, Bitcoin could drop to $62,500 to clear out the remaining speculative positions.
Woo emphasized the necessity of purging the “degen” open interest in futures bets, stating that these liquidations must occur before any significant upward movement can resume.
According to The Scalping Pro, Bitcoin has faced yet another rejection from its range high. The cryptocurrency has been oscillating between $60,500 and $71,500 since March, marking the fourth rejection from the upper limit of this range.
The analyst highlights that the next critical support level lies near the mid-range at $65,000, which is essential for Bitcoin to maintain to avoid further declines.
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