Bitcoin has been facing significant selling pressure from miners looking to cover costs and secure profits. Now, as Bitcoin approaches $93,000, miner selling has caused some volatility, but the resilience of bulls has been demonstrated, as Bitcoin has recovered to near its all-time high of $91,389.
The interplay between miner activity and market liquidity highlights a critical moment for Bitcoin. The recent halving event reduced the miner reward to 3.125 BTC, increasing financial pressure on miners and prompting them to liquidate some of their holdings to stay afloat.
This sell-off, which was especially noticeable as Bitcoin hit new highs, is likely to hinder the price's rally above $93,000.
Recent behavior:
In late October and early November, the price of Bitcoin spiked to around $90,500. At the same time, there were significant spikes in miner inflows, suggesting that miners were taking advantage of the price surge to make a profit.
This pattern shows that selling pressure is likely to increase if the outflow continues, which could signal that the price could fall again.
Support and resistance levels:
The current price is near a major resistance zone around $90,000 – $95,000 USD. The high miner inflow suggests that there could be strong selling pressure at this level, which could act as resistance.
If a correction occurs, key support levels to watch are $80,000 and then $70,000, based on previous price action and inflection points during miner withdrawal spikes.
Despite these challenges, the market has seen an influx of liquidity, notably from the issuance of new USDT tokens by the Tether treasury, indicating strong demand for Bitcoin.
This demand is further fueled by speculative interest surrounding major developments such as the possibility of a rate cut by the US Federal Reserve and increased inflows into Bitcoin ETFs.
These factors together help protect the market from deeper corrections but have yet to prevent minor pullbacks due to the ongoing mining sales.
The key question now is whether the market can sustain this bullish momentum amid continued miner selling. A concerted effort to buy into the dips effectively could push Bitcoin past its current highs and toward the elusive $100,000 mark.
The current price of Bitcoin (BTC) is $90,409, down slightly by 0.73% today.
Key observations:
Price Trend: Despite today's small drop, Bitcoin has seen strong growth with a weekly gain of 18.13% and a monthly gain of 33.77%. Year-to-date, BTC is up 114.01%, reflecting significant bullish momentum.
Market Capitalization: Bitcoin's market capitalization is $1.79 trillion, with a 24-hour trading volume of $62.81 billion, indicating high liquidity and active participation from traders.
Technical analysis
Bitcoin is currently facing resistance near $91,000. A successful breakout above this level could push the price towards the psychological $100,000 mark. However, if this resistance holds, there could be a pullback to the support zone around $85,000.
