Finally, after an unprecedented rally during the very first complete week of 2021, the BTC rate has actually gone into correction tanking more than 10% and slipping below $36,000 levels. At press time, Bitcoin (BTC) is down 11.58% trading at $35,734.
The current Bitcoin (BTC) price correction follows 2 days of rate consolidation around $40,500 levels and amid a big selling pressure originating from miners. As per the information from CryptoQuant, the Bitcoin Miner Position Index (MPI) reached its 17-month high at levels hidden from July 2019.
Courtesy: CryptoQuant The last time when MPI reached these levels, the BTC cost was trading at around $14,000, after which it remedied 50%by the end of 2019. As we can see from the charts, soon as the MPI levels crossed 11.5 levels this time, BTC has gotten in a sharp correction
of 12%. Nevertheless, CryptoQuant CEO Ki-Young Ju describes that the miner selling pressure has been developing over the last month. It is simply that Bitcoin continues to receive major support from institutional purchasing.
Institutional Bitcoin (BTC) Purchase on Hiatus
As we have actually recently seen, there’s an unmatched institutional need for BTC that has actually been offsetting the selling pressure.
But if we see the Grayscale Bitcoin Trust (GBTC) chart by Bybt, it appears like organizations have gone on a hiatus for the minute. After December 25, i.e., when BTC was at $24,000 levels, Grayscale has actually made no extra purchases, and its overall holdings remain the exact same just above 607K Bitcoins.
Courtesy: Bybt Ultimately, it seems that the miner selling pressure has overweighed the BTC buying/holding momentum and we are now seeing a profit reservation. According to historical patterns, the BTC cost has constantly fixed 30-40% from its new high levels, however, some analysts believe that the institutional involvement in BTC, unlike in the past, will hold up the correction only to 10-15% and we can see fresh buying anytime soon. Likewise, the BTC mega-whales have actually turned to heavy buying in 2021.
Currently, there’s been significant stress and anxiety around Tesla’s participation in Bitcoin after Elon Musk revealed interest in BTC. Will companies like Tesla, relocation part of their business balance sheet or reserve cash in Bitcoin to protect capital. Let us understand in the comments below.
The post Bitcoin (BTC) Tanks Over 10% Below $36,000 Amid Huge Miner Selling Pressure appeared initially on Coingape.