Bitcoin (BTC) Price Analysis: Multiple Sources of Selling Pressure Emerge as BTC Drops Below $65K

It seems that Bitcoin's selling pressure is through the roof again as the first cryptocurrency dropped below $65,000, with more than $140 million liquidated.

Bitcoin's selling pressure is through the roof once again as the first cryptocurrency dropped below the $65,000 level, with over $140 million liquidated in the process. However, the main source of this selling pressure might not be so obvious at first glance.

Recent price action shows that Bitcoin is struggling to maintain its footing above key support levels. The daily chart shows a steep decline, breaking below the 50 EMA and approaching the 100 EMA, with the RSI also indicating increasing bearish momentum.

Crucially, the selling pressure appears to be largely originating from Coinbase (NASDAQ:COIN). The Coinbase Premium Gap, which compares the price of Bitcoin on Coinbase Pro to its price on other exchanges, is deeply negative, indicating that Coinbase is currently executing orders from institutional investors who are looking to sell their holdings.

Willy Woo's analysis also sheds light on an extended period of miner capitulation. The Bitcoin Hash Ribbons, which indicate periods of stress and recovery for miners, show that we are currently experiencing record-high levels of miner capitulation. According to Woo, when the hash rate begins to rise again and weak miners drop out, Bitcoin tends to rally.

On a related note, the volume of large USD transactions has also drastically decreased, suggesting that major players are either scaling back or selling their holdings. This bearish sentiment is further highlighted by the Bulls and Bears indicator, which shows a clear prevalence of bearish addresses. With a widening gap between bullish and bearish addresses, it appears that more traders are selling than buying.

Collectively, these data points indicate multiple sources of selling pressure. Coinbase appears to be a major driver, with huge volumes of Bitcoin being sold on the platform. Furthermore, the extended miner capitulation phase adds to the selling pressure as miners sell their holdings to cover operating costs.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-price-analysis-multiple-sources-selling-pressure-emerge-btc-drops-k.html

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