Bitcoin opened the week still stuck in the low $9,100 range and traders are excited not with this price range, but with the lower volatility that comes with it. Traders expect a significant price move anytime soon, analysts said.
Bitcoin bounced from $8,815 on Friday (June 26) on Coinbase to a price spike at $9,113 the next day. By Monday, Bitcoin has recovered what it lost in the last two days but the price is not on the levels seen in previous weeks. As of June 30, 04:56:00 UTC, Bitcoin is printing a red candle at $9,162. The lower volatility resulted in $4 million combined short and long liquidations on derivatives exchange Bitmex.
The immediate resistance is at $9,313, which was broken June 24. Currently, the relative strength index is about to reach oversold levels while the moving average convergence/divergence looks poised to turn bullish in the next few days.
According to Coindesk, data suggested miners are putting Bitcoin to exchanges to liquidate. To the worry of many who think of this activity, represented by the graph from Glassnode below as a bearish signal, the inflow of cryptocurrency from miners to exchanges is at its highest this week vs. the entire year.
Bitcoin Miners need to convert their cryptocurrency holdings to cash in order to fund their operations and pay for bills — such as electricity cost. If the miners are selling a lot or sometimes more than the Bitcoins they mine, it could mean they are losing on their operations and the price of Bitcoin is not enough to cover their cost.
However, according to Austin Storms of mining mobile company BearBox, miners only make up a small percentage of the daily Bitcoin sell pressure. He thought the sentiment pointing to the miners is only because of frustration in Bitcoin’s current price behavior.
“People are bored with the $9,100-$9,400 range and are looking for any reason we might depart from it soon,” he told Coindesk.
In addition to miners selling, Bitcoin’s volatility is also decreasing, which could suggest exhaustion and that a significant price move could happen soon. CoinGecko research analyst Daryl Lau told Coindesk he wouldn’t be surprised “to see a big move” because the drop to $8,813 was brought up on low volumes.
“Cryptocurrency exchange volumes and the continued correlation to the S&P 500 seem to be signaling a downward move,” he said.