Bitcoin (BTC) has been trading between $100,000 – $102,000 over the past few days, struggling to break into higher price ranges. Despite surpassing the $100,000 mark earlier in December, the bullish momentum of the premier cryptocurrency has slowed down in the fourth quarter, with only a 4% increase so far in the final month of 2024. Recent data on Bitcoin miners’ transactions has raised concerns among investors.
According to crypto expert Ali Martinez, Bitcoin miners have been reducing their holdings significantly. Data from Santiment shows that miners have sold over 140,000 BTC, equivalent to $13.72 billion, in December alone. This has led to a decrease in their supply from around 2.08 million BTC to 1.95 million BTC. A substantial decline in miners’ holdings could signal weakness in BTC’s price and create downward pressure on the asset if the released supply exceeds market demand.
While miners may sell their holdings to cover operational costs, large sales like the ones reported by Martinez could indicate financial constraints and potential miner capitulation during a prolonged bear market. Despite the drop in miner holdings, BTC’s price has not reacted significantly, experiencing only minor pullbacks after a flash price crash and rejections at the $102,000 price level.
In other developments, market analyst Egrag Crypto has reiterated his prediction that Bitcoin could reach $176,000 in the current bull cycle. Using Fibonacci levels to identify support and resistance levels, Egrag Crypto had previously forecasted this price target before Bitcoin’s rally in November. With BTC currently trading at $101,000, the analyst predicts a move to $105,000 as the first target, with potential for a surge to $130,000 and ultimately $176,000 as the local peak for this bull cycle. Egrag also anticipates a bear market target of $33,000 – $44,600 at the end of the cycle.
As of the latest data, BTC is trading at $101,870, reflecting a 1.56% gain in the past week. Trading volume has decreased by 36.10% to $37.44 billion. The chart from Tradingview shows BTC trading at $101,909 on the daily chart.
In conclusion, Bitcoin’s price has been range-bound between $100,000 – $102,000, with miners reducing their holdings significantly in December. While this could signal potential weaknesses in BTC’s price, the asset has not reacted significantly to the drop in miner holdings. Market analysts remain optimistic about Bitcoin’s price potential, with forecasts suggesting a move towards $176,000 in the current bull cycle. The cryptocurrency market continues to be dynamic and volatile, with investors closely monitoring developments to make informed decisions.
