Bitcoin price lost momentum towards $30,000 after the US Federal Reserve increased rates by 25 basis points, and other central banks followed by raising their interest rates. Consequently, on-chain data reveals that both whales and miners are selling their BTC holdings as the market struggles to maintain crucial support levels. With the BTC price falling below the critical 200-Week Moving Average (WMA) while remaining range bound between $26,500 and $27,500, market participants must monitor these developments closely.
US Fed Chair Jerome Powell is scheduled to speak today on the monetary policy outlook. Recently, other Fed officials have expressed caution regarding the policy outlook, hinting at a potential shift towards more aggressive interest rate hikes. According to CME FedWatch, the chances of a 25-basis-point rate hike in June have risen from 15% a week ago to over 45%.
CryptoQuant reported that miner reserves have been decreasing recently, causing significant selling pressure on Bitcoin. On May 19, on-chain data showed that a miner dumped 1,750 BTC into Binance, after depositing 5,791 BTC last month, which led to a significant drop in the BTC price. Further details reveal that the Bitcoin Miner Reserve dropped nearly 1,840 BTC on Thursday, with miners predicted to continue selling their holdings.
Whales have also been depositing large amounts of Bitcoin into exchanges. In a recent example, an address transferred 10,000 BTC worth about $270 million to Coinbase when the BTC price was trading at $27,620. This indicates that whales are playing a significant role in these transactions and transfers, as evidenced by the early May surge in the Exchange Whale Ratio.
As a result, without a doubt, the market has observed an increase in Bitcoin transactions by these entities, with transfers involving more than 40% of the coins. BTC price dropped 2% over the last 24 hours, currently trading at $26,853. The 24-hour low and high were $26,415 and $27,466, respectively. Furthermore, trading volume has decreased in the past 24 hours, which indicates reduced interest among traders.
Technical indicators, such as Bollinger Bands and RSI, point to weakness in Bitcoin’s upside momentum, with a potential decline to $24,600. Although market outlooks can be highly variable, investors need to be prepared for any developments and conduct thorough market research before investing in cryptocurrencies.
Source: Coingape
