#Bitcoin Traders See Short-Term Downside Target of $60,000 as Miners Reduce Holdings

Traders are anticipating a deeper bitcoin price correction ($BTC ) in the coming weeks despite a strong stock market and favorable US crypto policies due to miner selling activity and general profit taking. .

"There is a new wave of dollar strength and demand for stocks. Demand for risk assets is gradually declining, forming a sequence of declining intraday highs for bitcoin," Alex Kuptsikevich, senior market analyst at FxPro, shared in an email on Friday to CoinDesk.

"Bitcoin continues to test the strength of the 50-day moving average, but finds no sufficient reason to sink further. This persistent test of the lows sets the bears up for quick success with its next target at $60,000," he added.

Some observers said miners, or entities that supply extensive computing resources to keep the bitcoin network running, may be among the selling groups.

"Bitcoin's upside potential may be limited due to miners' demand for cash," analysts at Japanese crypto exchange bitBank. "Since May, bitcoin miners' net position (BTC inflow and BTC outflow) has been gradually declining, suggesting that their operation has become tight after the Bitcoin network halving in April ".

"The increasing net outflows of BTC from miners do not necessarily put pressure on the price of bitcoin. However, prices tend to stagnate," the analysts add.

On-chain data cited by CryptoQuant in a report on Wednesday showed an increase in the transfer of BTC from mining pools to exchanges, which hit a two-month high on June 9