BTC miners appear to reduce their crypto holdings as a new report shows a negative net position.
Analysts warned about a potential profit-booking session that might drag Bitcoin to $40K again, and breaching this support will translate to a freefall.
Bitcoin trades around $42K on Saturday after a 3% fall over the previous day. Nevertheless, analysts believe a massive dip in the upcoming weeks as most investors liquidate their positions amid profit-taking. Miners aren’t an exception as they sell their minted tokens. Data indicates that miners’ Bitcoin position is negative, after staying positive since 2021 November.
While publishing this content, BTC changed hands around $42,076, following a 2.95% drop over the previous 24 hours. Meanwhile, BTC formed a high at $43,810 and plunged beneath $42K. Meanwhile, trading volume dropped 29% to hover at $24.9 billion.
Delphi Digital report suggests that the leading cryptocurrency heads towards a monthly, weekly, and daily resistance confluence. The firm’s analysts believe that indicates a potential short-term price ceiling. That way, it provides a logical level to anticipate risk reduction/profit-booking activity because of the resistance zones’ confluence and the latest low’s magnitude.
Meanwhile, Bitcoin had to maintain beyond the critical level at $40,000 to prevent a drop towards the following foothold at $38,500. Breaching this zone will translate to freefall for the crypto. Meanwhile, a recognized crypto analyst Crypto Ed NL supports the narrative, stating he is awaiting a BTC move to $40K, and any action beneath this zone will mean bearish dominance.
BTC Miner Selling Their Cryptocurrencies
A more pessimistic update reveals that BTC miners lose confidence about Bitcoin rallying higher, selling their minted digital coins. Glassnode data indicates that an index tracking miners’ Bitcoin holdings went negative. Keep in mind that the metric has been positive since 2021 November. Glassnode believes that signals less efficient and smaller miners are short-squeezed.
In that context, Bitcoin miners added their position even when BTC prices plummeted to levels near $30K in January. Publicly-listed miners, for instance, Marathon Digital, seem not bothered by this trend.
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