The post Bitcoin (BTC) Price Might See Major Drop This Week : Here’s Why appeared first on Coinpedia Fintech News
Bitcoin (BTC) price opened the third week of 2023 on a bearish sentiment after closing last week on a weak note. Less than a week after the United States Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs) and trading kicked off on respective stock exchanges, the sell-the-news narrative is already visible. Meanwhile, the altcoin industry is gradually taking over from Bitcoin as crypto cash rotation heightens.
Bitcoin Miners Offloads More Coins
Bitcoin miners have accelerated their on-chain activities in the past few weeks in anticipation of heightened volatility amid the spot ETF approval in the United States. According to market data provided by CryptoQuant, Bitcoin Miners’ Position Index (MPI) recently reached a multi-month high of around 9.43, indicating potential heightened selling pressure as more coins move to exchanges. Moreover, Bitcoin miners sent coins worth more than $1 billion to crypto exchanges in the past few days.
Unquenchable Demand from Institutional Investors
Bitcoin as an asset class has registered heightened demand against limited supply that is capped at 21 million. With 11 fund managers already offering spot Bitcoin ETFs in the United States, Bitcoin’s liquidity is expected to significantly improve in the coming years. Furthermore, BlackRock Inc. purchased more than 11k Bitcoins in the past few days.
BTC Price Analysis
Bitcoin price has gradually been forming a reversal pattern, where a weekly double top is coupled with a bearish divergence on the Relative Strength Index (RSI). Despite the recent weekly golden cross between the 50 and 200 Moving Averages (MA) depicting a bullish outlook, Bitcoin price is likely to retest the support/resistance level around $31k in the near term.
