After finding some stability following its bullish upwards movement earlier this week, Bitcoin’s momentum has faltered and is showing bearish signs that may point to an underlying weakness amongst BTC’s bulls.
Analysts are now noting that they anticipate a significant downwards movement for Bitcoin in the near-term and are also noting that there may be an unlikely suspect that will perpetuate any volatility seen throughout the aggregated crypto markets.
Bitcoin Retraces Towards $8,300 as Bears Gain the Upper Hand
At the time of writing, Bitcoin is trading down just over 1.5% at its current price of $8,370, which marks a notable drop from its daily highs of nearly $8,800.
Just prior to the downturn that occurred overnight, Bitcoin’s bulls rapidly pushed it to its daily highs around $8,800, which appears to be a notable level of resistance that shifted the short-term trend to the bear’s favor.
It remains unclear if the support that was built within the lower-$8,000 region will be enough to support the crypto’s price in the near-term, but one popular analyst believes that it will incur a notable drop in the coming few hours.
“$BTC Provided a target of 8670 from couple weeks ago before a potential reversal, well we went a little higher, but reversal is imminent. Big drop approaching (new lows) as we have a 4hr rising wedge on RSI. Still could climb tad higher upon apex before dump,” The Cryptomist, a popular analyst on Twitter, said in a recent tweet.
Provided a target of 8670 from couple weeks ago before a potential reversal, well we went a little higher, but reversal is imminent
Big drop approaching (new lows) as we have a 4hr rising wedge on RSI
Still could climb tad higher upon apex before dump pic.twitter.com/8Kb6Ohkb1g
— The Cryptomist (@TheCryptomist) October 11, 2019
Could Miners Perpetuate BTC Volatility in the Near-Term?
It is important to note that any potential big movement, including the one that The Cryptomist is pointing to, could be perpetuated by Bitcoin’s miners, as data shows that they have been holding their mined crypto and then selling it during periods of significant volatility.
TokenAnalyst – another popular cryptocurrency analyst on Twitter – spoke about this data in a recent tweet, eluding to the possibility that another significant movement will be perpetuated by miners.
“Following up on the great analysis by @eliasimos using our miner rewards API, we tracked how much $BTC these large mining pools sent into exchanges over time. We see miners taking advantage of volatility by sitting on their mined stash and then selling around large price swings,” they explained.
Following up on the great analysis by @eliasimos using our miner rewards API, we tracked how much $BTC these large mining pools sent into exchanges over time.
We see miners taking advantage of volatility by sitting on their mined stash and then selling aroung large price swings. https://t.co/tKQDzUTOMC pic.twitter.com/Lapt0NyOsY
— TokenAnalyst (@thetokenanalyst) October 11, 2019
How BTC responds to its recent drop may prove to be critical for determining how it trends for the rest of the year, as a break below its recent support of $7,800 could spark a massive downtrend that is perpetuated by miners selling off their BTC holdings.
Featured image from Shutterstock.