Recent price action has raised concerns that Bitcoin (BTC) could be poised for another decline, with the daily closing price indicating potential weakness.
Bitcoin miners may be crucial in preventing a sharp plunge, provided the exchange flow remains stable.
Benjamin Cowen, the founder of Into The Cryptovers, has suggested that Bitcoin could be heading towards a death cross. Cowen shared his analysis on X (formerly Twitter), emphasizing that a death cross could lead to lower highs, which are already starting to manifest.
A death cross occurs when the short-term Moving Average (MA) falls below the long-term MA, typically signaling price weakness in Bitcoin’s market chart.
The presence of lower highs, where the closing price is lower than the high of the previous day, could further contribute to Bitcoin’s potential decline.
Cowen had previously predicted lower highs for Bitcoin on September 12 when BTC was heading towards $27,000. However, Bitcoin’s price action has consolidated mainly in the past seven days.
In contrast, Vladimir Toporkov, Chief Marketing Officer at stablecoin payment firm Edelcoin, remains optimistic about Bitcoin’s potential. Toporkov suggested that Bitcoin could reach as high as $30,387 in the fourth quarter (Q4), but he acknowledged that the coin’s volatility would be tested.
Toporkov also noted that the sentiment surrounding Bitcoin ETF applications could reappear and advised investors to be cautious, particularly as the year-end approaches, when many large holders tend to take profits.
On a different note, IT Tech, an on-chain analyst, examined Bitcoin’s current situation and the potential impact of miners on its price. Previously, miners had been selling some of their holdings, contributing to selling pressure.
However, IT Tech’s analysis showed that the seven-day miners-to-exchange inflow had stabilized. This metric reflects the total number of coins miners own and transfer to exchanges. An increase in this metric typically suggests an intention to sell, while a decrease implies the opposite.
As of September 28, the metric had decreased to 125.54, significantly lower than the previous day’s level of 1200. This decrease implies that Bitcoin may only face substantial selling pressure if the metric suddenly spikes.
IT Tech concluded the analysis by cautioning that miners’ reserves remained stable. While they exert some selling pressure, it is particularly noticeable during periods of low trading volume and slow price movements.
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