Miners Dump Bitcoin To Crypto Exchanges, BTC Price Reversal Below $25K Likely
Bitcoin price fell from $28K to $26.5K after the US CFTC sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for violating US crypto trading and derivatives regulations. The crypto market views this move as a continued regulatory crackdown on crypto.
With the crypto market already facing liquidity problems, action against Binance will further exacerbate the liquidity problem as it is the world’s largest crypto exchange. According to data, Bitcoin trading on Binance is over 80% after the collapse of FTX and Operation Choke Point 2.0.
Miners have started selling their Bitcoin holdings. Bitcoin Miner to Exchange Flow Metrics indicate that miners transferred nearly 1,700 BTC to crypto exchanges on Tuesday. It increases the selling pressure on Bitcoin from miners. This is the second largest sale of miners YTD after over 3K BTC sale on January 19th.
Furthermore, Bitcoin Miner Reserve The calculation shows that miners’ BTC holdings also fell. It confirms that miners have started to sell their Bitcoin holdings and it will trigger Bitcoin price drop. It is important to monitor the situation daily.
Bitcoin Miner to Exchange Flow for Binance Pool data shows that 1646 BTC was transferred from the Binance mining pool to the Binance exchange.
Bitcoin price likely to fall to $25,000
Bitcoin price is currently trading at $26,951. The 24-hour low and high are $26,606 and $27,304 respectively. Thus, the BTC price has decreased almost 3% in the last 24 hours. Trader sentiment remains relatively neutral, with Binance being sued and other recent uncertainties not affecting their expectations.
As popular analyst Direct Capital, BTC approaching below $27,000 in the daily timeframe would be enough to trigger the breakdown process. Bitcoin is currently holding above the $26.5K level. However, uncertainty and monthly near-term risk Bitcoin price to regain the 200-week moving average (WMA)
Also read: After CFTC, SEC may sue Binance over securities offering
