Selling pressure on Bitcoin increases; is another price correction on the way

• A whale deposited Bitcoin worth over $38 million to Binance on 18 May 2023.
• BTC’s hashrate also registered a decline, indicating an outflow of miners. 

Though Bitcoin’s [BTC] price action has not been very volatile of late, the king coin fell victim to a minor price correction in the last 24 hours. However, it recovered slightly after the incident. 

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According to CoinMarketCap, BTC’s price declined by nearly 2% in the last 24 hours, trading at $26,816.82 at press time. However, a recent analysis of CryptoQuant suggested that things could get even darker. 

Bitcoin under selling pressure?

Lookonchain revealed that a whale deposited BTC worth over $48 million to Binance. The same whale earlier deported BTC worth over $160 million, and the coin’s price declined by over 3%.

The same scenario turned out to be true this time as well, when BTC’s price dropped soon after the whales made the deposit. However, the good news was that the 3% price drop did not last for long as BTC made a slight recovery. 

BTC miners are also selling

Not only investors, but Bitcoin miners were also selling their assets. IT Tech, an author and analyst at CryptoQuant, recently posted an analysis that pointed out an interesting development in BTC’s mining sector.

As per the analysis, Miner Poolin: 3BPAodH6WkNQC8TUrnwFKhETiFacNUi68X sent 1750 BTC to an address, which later transferred BTC to Binance. In addition to that, miners’ reverse was also declining, which clearly indicated that BTC was witnessing sleeping pressure from the miners as well. 

Source: CryptoQuant

In addition to that, Bitcoin’s hashrate has also registered a slight downtick over the last few days. A decline in hashrate means that miners are moving out of the BTC ecosystem. At the time of writing, Bitcoin’s hashrate stood at 344.77 million TH/s.

Source: ycharts

Metrics are bearish for Bitcoin

The selling pressure was yet again proven by BTC’s on-chain metrics. For instance, miners’ position index was red, indicating that miners were selling more holdings compared to their one-year average. BTC’s net deposits on exchanges were also high, compared to the last seven days. 

Source: CryptoQuant

Read Bitcoin’s [BTC] Price Prediction 2023-24

A look at BTC’s derivatives market

As per Coinglass, BTC’s open interest has been on an uptrend for quite some time. An increase in the metrics reflects that new money is flowing into the market, suggesting that the current precise trend can continue for longer. However, it was interesting to see that BTC’s long/short ratio registered an uptick. A high ratio suggests bullish market sentiment.

Source: Coinglass