- Bitcoin faces significant selling pressure from miners, with 1,200 BTC sold recently.
- OTC desk balances for miners surged by 54,000 BTC this month, reaching a one-year high.
- Analyst Willy Woo warns that ongoing liquidations could push Bitcoin prices down to $62,500.
- The next critical support level for Bitcoin is around $65,000 to avoid further declines.
Bitcoin’s price is under intense pressure as miners offload significant amounts of BTC. The surge in OTC desk balances suggests more selling could be on the horizon, potentially driving prices lower.
Miner Capitulation Hits New Highs
Bitcoin miners have been aggressively selling their holdings, creating substantial downward pressure on the price of BTC. On Monday, miners offloaded 1,200 BTC, the largest daily sell-off since late March. These transactions were conducted over-the-counter (OTC), indicating a preference for large, discreet trades that avoid directly impacting market prices.
Julio Moreno, Head of Research at CryptoQuant, noted that Bitcoin OTC desk balances for miners surged by 54,000 BTC this month, reaching a one-year high. This significant increase signals that miners might be preparing to sell more Bitcoin, possibly due to concerns over potential price drops or an immediate need for liquidity.
Following the recent halving event, many mining operations have found it challenging to maintain profitability. This financial strain has led some miners to consider exiting the industry altogether, which could further impact Bitcoin’s price stability.
Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500https://t.co/pHt65oahws
— John Morgan (@johnmorganFL) June 12, 2024
BTC Price Headed to $62,500?
Renowned Bitcoin analyst Willy Woo has raised concerns about the potential for further downward price movements. Woo suggests that ongoing liquidations could drive Bitcoin’s price down to $62,500. This drop is seen as necessary to clear out speculative positions that have been building up in the market.
Woo emphasized the importance of eliminating the “degen” open interest in futures bets. He argues that these liquidations must occur before Bitcoin can resume any significant upward movement. The Scalping Pro, another analyst, highlights that Bitcoin has faced multiple rejections from its range high of $71,500 since March. The cryptocurrency has been oscillating between $60,500 and $71,500, marking the fourth rejection from the upper limit of this range.
#Bitcoin looks like going to $64700 – $62500 range pic.twitter.com/uIXEYRPOaB
— İsmail TARIM (@ismailtarim977) June 11, 2024
The next critical support level for Bitcoin is around $65,000. Holding this level is crucial to prevent further declines. If Bitcoin fails to maintain this support, it could face a more pronounced drop, making $62,500 a realistic target.
As the market braces for these potential movements, the upcoming FOMC meeting adds another layer of uncertainty. Traders and investors are closely watching how macroeconomic factors might influence Bitcoin’s trajectory in the short term.
