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Bitcoin price failed to spark a rebound after its recent sharp decline as it held on to one of the important support levels.
While some are focusing on various aspects of a healthy rebound, the possibility of reaching more lows hangs over the cryptocurrency space.
Bitcoin remains in dire straits as bulls stay away from shore. The coin’s failure to regain $26,000 over the weekend was expected and made market participants less hopeful about the impending trend. Global market capitalization also appears to be losing its grip as trading volumes have dropped significantly over the past 24 hours. Meanwhile, BTC dominance is rising and heading strongly towards 48%.
So, does the current lull indicate a decent upside recovery or is it ready for another bearish turn?
The price of BTC is trading closely along a lower trendline that has held since early 2023. While current levels show some strength, they may not continue to hold for much longer. The underlying reason could be that miners are preparing to push the price of BTC down significantly ahead of the upcoming Bitcoin halving.
According to data from Glassnode, miners have sent a large amount of Bitcoin to exchanges in the past week. The level recorded is the highest in the past 12 months, at about $70.8 million, and ranks third among all levels. This is barely $30.2 million lower than the level recorded during the main bull run in 2021, which was about $101 million. This suggests that miners are about to complete a massive move that could directly affect the price of BTC in the short term.
During the 2021 bull run, when the price reached over $100 million, the BTC price fell sharply from the mid-term high of $64,854 and tested a low of around $28,805 in less than 45 to 50 days. Therefore, now that miners are once again planning to exert huge selling pressure, the BTC price may soon fall into the abyss.
In this case, a new bottom may also be in place, so traders need to keep an eye on the price action and act accordingly.