Bitcoin has been under intense selling pressure over the past 48 hours, with bears trying to reverse the cryptocurrency’s recent strength.
They continuously took on $30,000, with the cryptocurrency touching that level on a few occasions before shooting up.
The rally has been rather weak so far and reversed almost the moment the cryptocurrency rose above $36,000.
Currently (time of this writing), Bitcoin Machine is trading down just over 4% at its current price of $34,400, marking an overnight decline from highs at $36,500.
This is a serious sign that points to underlying weakness in the bulls.
An on-chain analyst now points out that it probably depends on BTC miners where the entire market is headed next.
He notes that miners are the ones who triggered the recent selloff, and the data suggests that they may continue to dump their coins in the near future.
Bitcoin is currently in a precarious position. After a seemingly strong bounce, the cryptocurrency has lost its strength and is drifting lower, finding some support at $33,000.
This marks an overnight decline of more than 10% from the highs set at the peak of the recent rally.
This decline may also mark the start of the second wave of selling, as an on-chain analyst who predicted the last decline is now noting: On-chain data suggests miners are selling their holdings.
Bitcoin struggles to regain momentum
The cryptocurrency set those highs after yesterday’s plunge to $30,000. Bitcoin trading is now right between those two levels.
This could represent a new trading range for the cryptocurrency, although it remains unclear whether the bulls will be able to protect themselves from a break below support.
On-chain analyst: BTC miners could trigger second wave of selling
Regarding where Bitcoin will trend next, an on-chain analyst writes that he is now watching for a deeper sell-off.
He notes that miners haven’t stopped selling yet and could absorb any support from small investors on the buy side.
„Nothing has changed since yesterday. Miners selling, no significant stablecoin inflows, no Coinbase outflows, and 15k BTC flowed into exchanges since yesterday. We could get a second dump.“