Bitcoin Rebounds as Miners Reduce Selling Pressure
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Free Crypto Signals Channel
Free Telegram Channel
BTC trades above the $21K level in the London session on Tuesday after slumping to the $17.5K low over the weekend. A notable degree of the recent sell-off got sponsored by Bitcoin miners offloading their holdings onto exchanges. Reports show that these miners moved a record amount of tokens, a negative optic for any crypto asset.
Regardless, the sealing pressure around BTC appears to be in reverse presently after recording its worst week since May 2021.
On-chain data provider CryptoQuant explained that after tapping a record high last week, flows from Bitcoin miners to exchanges have declined significantly. As mentioned earlier, this indicates that miners have stopped flooding the market with excess supply, easing the selling pressure.
Reports show that miners moved 308 BTC to exchanges on Monday, compared to moving as much as 4,700 BTC last week. Not surprisingly, this bearish easing coincides with the cryptocurrency returning above $21K.
Another report from Glassnode detailed the miners’ net flows have dropped to a thirty-day low, suggesting limited reading activities from this group. The report noted that miners appear to be adopting a hold strategy despite the persisting price volatility.
Since the start of the year, miners have sold their holdings in significant quantities to sustain their operations as mining profitability got impacted by dwindling prices.
Key Bitcoin Levels to Watch — June 21
Bitcoin has returned above the $21K top as the price eased out of oversold territories on the daily chart. The benchmark cryptocurrency now appears to have the charge to take on the $22K resistance in the near term amid a marketwide recovery.
However, we could see some fireworks around the $23K level, where BTC has repeatedly faced strong headwinds since it fell below. In the unlikely event that the primary cryptocurrency scales this barrier in the near term, the target bear becomes the $26K May bottom.
Meanwhile, my resistance levels are at $22,000, $23,000, and $24,000, and my key support levels are at $20,000, $19,000, and $18,000.
Total Market Capitalization: $932.8 billion
Bitcoin Market Capitalization: $404.9 billion
Bitcoin Dominance: 43.3%
Market Rank: #1
You can purchase Lucky Block here. Buy LBlock
