Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500

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As a researcher with extensive experience in the cryptocurrency market, I find the recent developments in Bitcoin (BTC) concerning. The FOMC meeting was highly anticipated, and yet, Bitcoin came under significant selling pressure. On-chain indicators suggest that miners have been offloading their holdings aggressively.

Before the highly anticipated Federal Open Market Committee (FOMC) meeting, Bitcoin experienced substantial selling pressure. According to on-chain data, miners have been actively disposing of their Bitcoin holdings. At present, the Bitcoin price stands 1.5% lower at $67,400, and its market capitalization amounts to $1.328 trillion.

Bitcoin Miner Capitulation Rises

As a cryptocurrency market analyst, I’ve noticed some concerning developments in the Bitcoin mining sector. According to CryptoQuant’s Head of Research, Julio Moreno, miners sold a significant amount of Bitcoin on Monday – 1,200 coins to be exact. This represents the largest daily miner selling volume since late March, suggesting that miners may be struggling to maintain profitability and could be capitulating en masse.

Miners have preferred conducting their Bitcoin transactions off-exchange, or over-the-counter (OTC), in large, clandestine deals this month. The result is a significant increase of approximately 54,000 BTC in OTC desk balances for miners – marking a new peak for the year.

Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500

As an analyst, I’ve noticed a notable surge in Bitcoin transfers to Over-The-Counter (OTC) desks. This trend could be indicative of miners intending to sell more Bitcoin. The reasons behind this decision might stem from fears of impending price declines or an urgent financial requirement.

BTC Price Drop to $62,500?

As a crypto investor following the analysis of Willy Woo, I understand his perspective that recent market turbulence may lead to continued price declines for Bitcoin. If the ongoing liquidation of long positions intensifies, it’s possible that Bitcoin could dip down to around $62,500 to help balance the market and eliminate excess speculation.

Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500

Woo stressed the importance of getting rid of the “degen” open positions in futures contracts. He pointed out that it is essential for these liquidations to take place before any substantial price increase can continue.

As a crypto investor following The Scalping Pro’s analysis, I have observed Bitcoin’s repeated refusals to break through the resistance level at $71,500. This price action has kept Bitcoin bouncing between $60,500 and $71,500 since March, making it the fourth time this range high has thwarted Bitcoin’s advance.

The analyst points out that a key level of support for Bitcoin is around $65,000, which is significant as a dip below this price could lead to more downturns.

Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500

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2024-06-12 07:31