Bitcoin, the world’s largest cryptocurrency, has had a turbulent week (BTC). But the flagship currency has now managed to record the first weekly green candle in three months.
At the moment, Bitcoin Price is trading 4.71% higher at $31,174, with a market capitalization of $594 billion. The flagship currency is up by 2.32% on a weekly chart. However, while this may provide some comfort to Bitcoin traders in the near term, it does not always indicate a rebound.
Bitcoin to Shed More Blood
Some experts predict that this is merely a bearish bounce and that we will see further declines in the future.
Still Bitcoin is far above its 200-day moving average, according to the technical chart (DMA). BTC has historically fallen at the 200 DMA or slightly below, which is a 25% drop from the present level.
Rekt Capital, a well-known cryptocurrency expert, explains that
“BTC has typically dipped at, near, a little below the 200-week MA (orange). To bottom at the 200 MA, $BTC will have to plunge another -25% from current values.”
Bitcoin Miners Transfers 200,000 BTC
Bitcoin miners are all selling excessively during the latest market downturn, according to data from Glassnode. As per the data providing firm, “After the current sell-off, bitcoin miners have turned into net distributors. Balances of miners have been declining at a peak level of 5k to 8k $BTC per month ($150M to $240M at $30k $BTC). This week, their spending has dropped to 3.3k $BTC per month.”
Bloomberg data indicates that Bitcoin miners moved roughly 200,000 BTC to exchanges in the final month of May, according to CoinMetrics data. Top publicly traded mining companies like Riot Blockchain are among the sellers.
Head of content at Compass Mining, Will Foxley, believes that miners are more focused on the macro environment and it is wise to sell off Bitcoin to keep the operations secure, sell Bitcoin at these prices