Bitcoin miners are dumping more BTC as prices fall, making traders panic. BTC dropped to $77,700 over the last 24 hours, and miner transfers to exchanges shot up, according to analysts.
This isn’t new, as miners often sell during dips to pay their bills. But if they sell too much, it can drag prices down even more.
In the last 24 hours, crypto liquidations hit a massive $880 million. Bitcoin fell to $76,600 before bouncing back to $81,738. A strong recovery candle on the charts hints at a possible move toward $86,000. But there’s a support-turned-resistance level between $85,600 and $86,700, which could slow things down.
“Miners are forced sellers, and their flows impact market liquidity,” said IT Tech. When miners sell at low prices, it often means they’re under financial pressure. Rising costs could be squeezing them, and if they keep selling, Bitcoin might struggle to hold its ground.
Moreover, BTC is below its 200-day moving average. Analyst Ali Martinez, in a recent tweet, pointed out that the Mayer multiple signals $66,000 as a strong support level. If miners don’t slow down their selling, Bitcoin could test that level soon.
Additionally, the 50-day and 100-day moving averages are about to cross in a bearish pattern. The MACD indicator also shows downward momentum. However, if buyers step in, BTC could hold steady at around $80,000 and try another rally.
Meanwhile, Bitcoin’s hash rate, which is the total computing power securing the network, is near its highest level ever. That’s unusual because prices have been struggling. Analyst James Van Straten said the hash rate is just 5% away from its all-time high, creating a strange disconnect from Bitcoin’s price.
Some U.S. miners have had a rough time producing Bitcoin lately, but the extra supply doesn’t seem to be coming from big mining companies. The Foundry mining pool, which controls 30% of the network, hasn’t changed much. That suggests smaller miners or private operators are selling more BTC.
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