Bitcoin traders are anticipating a short-term bearish target at $60,000 due to miners reducing their holdings. This prediction is based on several factors that are contributing to a potential price correction in the coming weeks. Here are some key points that highlight the reasons behind this forecast:
Miners' Reduced Holdings
Miners, who provide extensive computing resources to maintain the bitcoin network, are reducing their holdings. This trend is attributed to the recent halving of the Bitcoin network, which has made mining operations tighter. As a result, miners are selling their bitcoin to meet their cash demands, which could lead to further price fluctuations.
Selling Activity
Selling activity from miners and general profit-taking are key factors driving the bearish sentiment. Miners are transferring their bitcoin from mining pools to exchanges, which is often seen as a sign of an impending sale. This increased selling pressure could lead to a deeper price correction.
Market Sentiment
Market sentiment is also playing a significant role in the bearish forecast. Risk asset demand is gradually diminishing, and the movement of funds to an exchange is often seen as a sign of an impending sale. This shift in sentiment could lead to a deeper price correction.
Technical Analysis
Technical analysis also supports the bearish target. Bitcoin's resistance to falling below the 50-day moving average suggests that bears are poised for a potential drop to $60,000. This persistent testing of the lows sets the bears up for quick success with their next target at $60,000[4][5].
Comparison with Other Tokens
Other major tokens, such as BNB Chain's BNB, XRP, and Solana's SOL have experienced double-digit percentage losses since Monday. Riskier meme coins like dogecoin (DOGE) and shiba inu (SHIB) have lost even more, with losses of 15%. This widespread decline in token prices could be indicative of a broader market downturn.
Decoupling from Nasdaq
Bitcoin's price has seemingly decoupled from the technology index Nasdaq, deviating from its usually positive correlation with this index. This decoupling could be a sign of a broader market shift and may contribute to further price fluctuations.
Long-Term Outlook
Despite the short-term bearish forecast, the long-term outlook for Bitcoin remains optimistic. Rachel Lin, CEO and co-founder of SynFutures, believes that $67,000 remains a crucial level for Bitcoin, and the long-term outlook remains bullish.
In conclusion, miners reducing their holdings, selling activity, market sentiment, technical analysis, and the decline in other tokens are what are driving the short-term bearish target at $60,000. While the short-term outlook appears bearish, the long-term outlook for Bitcoin remains optimistic.
