Bitcoin price has fallen recently and broke many support levels. This comes after positive reports about US inflation have left some investors wondering why the market is falling. 🔍
According to technical analysis, the price started to decline after being rejected at $70K and settled below the 200-day moving average. Currently the market is hovering around $57K. However, the 200-day moving average has prevented the price from recovering, so a drop to $52K seems likely in the coming weeks. 📉
Analyzing the behavior of BTC miners can be useful to find the underlying reasons for the recent decline. The Miner Reserve metric measures the amount BTC miners hold in their wallets. Decreases in this metric indicate that miners are selling more Bitcoin than they are producing, which could be a bearish signal. In recent months, the Miner's Reserve metric has plummeted. This suggests that miners may not be expecting further bullishness in Bitcoin. This selling pressure could cause the price to drop further.