In A Nutshell:
Bitcoin has fallen below $65,000 with over $140 million liquidated, driven by significant selling pressure from institutional investors on Coinbase and prolonged miner capitulation. The cryptocurrency struggles to maintain key support levels, reflecting growing bearish momentum in the market.Bitcoin's selling pressure is surging once again, with the cryptocurrency falling below $65,000 and over $140 million in liquidations. The primary source of this pressure might not be immediately apparent.
Recent market behavior shows Bitcoin struggling to maintain key support levels. The daily chart reveals a significant decline, with Bitcoin breaking below the 50-day EMA and nearing the 100-day EMA. Additionally, the RSI indicates growing bearish momentum.
A critical factor is that Coinbase (NASDAQ) is a major source of this selling pressure. The Coinbase Premium Gap, which compares Bitcoin prices on Coinbase Pro to other exchanges, is significantly negative. This suggests that Coinbase is handling large sell orders from institutional investors.
Willy Woo's analysis sheds light on the prolonged period of miner capitulation. The Bitcoin Hash Ribbons, which track miner stress and recovery, indicate record-breaking miner capitulation. Woo notes that Bitcoin typically rebounds when the hash rate increases and weaker miners exit the market.
Furthermore, the volume of large USD transactions has sharply decreased, indicating that major players are scaling back or selling their holdings. The Bulls and Bears indicator, which tracks the balance of bullish and bearish addresses, underscores the bearish sentiment as the gap between these addresses widens.
Overall, multiple sources of selling pressure are at play. Coinbase appears to be a significant driver with substantial Bitcoin sales on the platform. Additionally, the prolonged miner capitulation phase adds to the pressure as miners sell off holdings to cover operational costs.
