Bitcoin Drops Below $30,000 Again, Fears of Miner Capitulation Rising

It is slowly becoming a well-known pattern: bitcoin (BTC) rises out of the weekend and corrects a day later, by Tuesday, back to the same price. Analyst IncomeSharks also sees this pattern playing out in recent months and warned about it before the decline started:

Bitcoin price drops by 5.6%

The bitcoin price broke through $30,000 on Sunday night and then made a big jump. Bitcoin surged above USD 31,200 yesterday morning and pushed into the USD 31,500 resistance a little later. Bitcoin continued to push against this resistance for the rest of the day, but failed to break through.

There was still a small spike in between where bitcoin briefly touched $30,700 and the price remained above $31,200 for the rest of the day. However, around 2 a.m. last night, bitcoin lost traction and then plummeted all the way back to USD 29,500.

Bitcoin initially briefly dipped to $29,300, but for now, the price is holding above $29,500 this morning. The BTC price is rising slightly at the time of writing, reaching $29,600 on Binance and $27,660 on Bitvavo. The BTC price is therefore 5.6% in the minus today.

Bitcoin scam pump

Analyst M Ernest also warned before the decline began that the rise is unlikely to be a “real price increase” as it was last time. This is partly due to the low liquidity and lack of buyer activity. It shows that investors are still very cautious in these macro conditions.

Bitcoin still stuck in the same range

Analyst Ali Martinex reports that if bitcoin loses support around USD 29,500, the next one is around USD 28,600. On the upside, bitcoin needs to break through USD 30,000 and USD 30,500 again to test the USD 31,500-$32,000 area again. Regardless, bitcoin is still stuck in the same range and it wouldn’t be a surprise if bitcoin continues to move sideways for longer.

Bitcoin miner capitulation?

Nevertheless, we also have to take into account that bitcoin is still the most recent lows may look up around $27,000 and possibly even fall to the 200-week moving average around $22,300. In the meantime, there is again fear of a so-called miner capitulation. It’s a fear we haven’t seen in a long time, but the low price is making bitcoin mining less profitable. There are already signs that miners are selling well:

In addition, this CryptoQuant analyst reports that the so-called hash ribbon indicator shows that miners are not in a certain relaxed and profitable zone. Should the yellow line fall below the red line in the chart below, it could possibly indicate the start of miner capitulation. However, we also saw this fear of miner capitulation in the previous bear market, but ultimately did not materialize. However, the new bill in New York may make miners extra anxious.

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Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences and are for educational purposes only.

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