Forex and Crypto News

Indicators advise selling Bitcoin

17:36 26 January /2021

It looks like Bitcoin's correction is not over yet. Several factors indicate this. They make us talk about a further decline in the price of Bitcoin in the spot market.

If you look at the supply of Bitcoins by miners, you can see that the amount of Bitcoins in miners' wallets is decreasing. This suggests that miners have started selling their Bitcoins. Their sales rose after the price peaked at $42000. Miners have the biggest influence over the Bitcoin supply. If there are changes in the supply of Bitcoins by miners, the price reacts to this.

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It is also worth looking at an indicator such as OTC purchases of BTC by institutional investors. The market has seen a decline in demand for Bitcoin by institutional investors in the short term. Without spot inflows of US dollars, there is no longer a bullish move.

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The third factor is the indicator of all exchange reserves of stablecoins. This indicates an increase in transactions with Bitcoins and dollar-pegged tokens such as USDT, USDC. Traders use stablecoins to lock in their profits/losses without having to go through major banking channels every time.

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All these factors indicate a growing increase in the supply of Bitcoins in the market. This means that we will see a further decline in prices until new demand appears that can raise the price.

 

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