By
Bena Ilyas
May 13th, 2024
Nearly 28K Bitcoins have been deposited in crypto exchanges in the past week led by BTC miners thus signaling possible price correction in the short term.
Bitcoin (BTC) price has experienced heightened volatility in the past few days resulting in nearly $1 billion liquidated from the entire cryptocurrency market. Amid the high-impact news from the United States, Bitcoin price has attempted to rally towards $46K, but the uncertainty on the spot Bitcoin ETF decision has significantly weighed down on the instrument.
Moreover, Bitcoin price registered a profitable fourth quarter of 2023 fueled by the spot ETF frenzy. However, with the decision from the United States Securities and Exchange Commission (SEC) expected anytime, a lot of speculation on the sell-the-news narrative has dominated crypto traders.
Bitcoin Exchange Balance on the Rise
According to on-chain data analysis provided by CryptoQuant, cryptocurrency exchanges have recorded an increase of more than 28K Bitcoins in their balance during the past week. Additionally, cryptocurrency exchanges have seen an increase of over 87K Bitcoins in the past month, according to an on-chain analysis provided by Coinglass. Notably, Bitcoin miners have accelerated their selling pressure in the recent past, suggesting imminent price correction.
“The upward trend in the exchange reserves typically suggests an increasing selling pressure, indicating that more coins from the exchange’s holdings are potentially entering the market for sale,” CryptoQuant noted.
BTC Still Favorite among Investors
According to a recent report from CoinShares, Bitcoin accounted for about 87 percent of the $2.25 billion in cash inflows last year. The heightened demand for Bitcoin has seen a dozen fund managers file for spot Bitcoin ETF with the United States SEC. Moreover, the fourth Bitcoin halving is fast approaching and the current block reward of 6.25 will be reduced to 3.125 coins. With the rising Bitcoin demand, the underlying value will eventually rise in the subsequent quarters in order to balance miners’ expenditures.
From historical halving price action, Bitcoin price experiences an exponential growth phase after every halving. With this year’s halving coinciding with expected spot Bitcoin ETF approval in the United States, more investors are speculating a six-figure target by the end of this year.
BTC Price Action
From a technical standpoint, Bitcoin price needs to consistently close above the resistance/support level of around $43,785 in the coming weeks in order to secure further gains. The next phase for the Bitcoin price action is expected to be curved by the decision from the US SEC on the Ark 21Shares and other spot ETF applicants by January 10. In case the US SEC rejects the spot Bitcoin ETFs, the flagship cryptocurrency will experience a significant selloff. On the other hand, Bitcoin bulls are targeting $52k in the short term should the US SEC approve the dozen spot Bitcoin ETFs.