According to a report, Bitcoin miners may be selling their recently acquired BTC around the $28k mark in order to cover their operational expenses. The intense competition in mining has also impacted their profits.
The selling pressure on Bitcoin at the $28k level, which has persisted since mid-May, is likely the result of miners selling their freshly minted BTC to meet their operational costs.
MatrixPort's team has put forward this theory, suggesting that miners are compelled to sell their BTC due to declining profit margins in recent weeks. The rising mining difficulty has contributed to this situation, reaching record levels.
Markus Thielen, Head of Research at MatrixPort, explained that most mining machines produced before 2022 seem to be unprofitable based on current input costs and expected revenue.
In terms of Bitcoin's immediate price movement, the daily BTC/USDT chart reveals that the primary digital asset is currently trading around the $27k support level, aligned with the position of the 100-day moving average (yellow line).
Additionally, the chart indicates that Bitcoin found support at the 200-week moving average (black line) twice last month, specifically at $25,811 and $25,871. This moving average has served as reliable macro support around the $26k level. It is crucial for Bitcoin to maintain this support in order to sustain a bullish sentiment and potentially break through the $28k price barrier.
Moreover, Bitcoin's one-day Money Flow Index (MFI) shows a neutral situation, while the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest an equal likelihood of a push towards $28k or a drop to the 200-week moving average.
Considering the start of a new month and the recent agreement to raise the US debt ceiling by legislators, there is a slightly higher probability of a gradual upward movement towards $28k in the coming week.
