Bitcoin Price Analysis: Here’s How BTC Could Perform This Weekend
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Key Insights:
Bitcoin (BTC) price traded at $26,800 for the better part of Friday, October 13, 2023, as the bulls averted a reversal below the $25,000 earlier this week.
Bitcoin miners were spotted transferring 2,271 BTC worth 60 million this week, according to on-chain data from Glassnode.
Technical analysis indicators provide insights into how the miners’ recent trading activity could impact BTC price this weekend.
Bitcoin (BTC) price traded at $26,800 for the better part of Friday, October 13, 2023. Technical analysis indicators provide insights into how the miners’ recent trading activity could impact BTC price action this weekend.
Bitcoin Miners Spotted Moving $60 Million
Bitcoin bulls fiercely defended the $25,000 level earlier this week amid growing bearish pressure. Since then, the US CPI data released on Thursday appears to have boosted investor confidence as BTC rebounded toward $27,000 on Friday.
But the activity of Bitcoin miners has draw significant attention. Since Monday, the Miners have been in a selling frenzy. They sold off a total of 2,271 BTC worth this week according on-chain data from Glassnode.
The chart below shows that the Miners held 1,843,270 BTC in their cumulative balances on October 7. But at the close of Friday, October 13, they held just 1,841,000 BTC.
Bitcoin (BTC) Miners Reserves vs. Price | Source: Glassnode
Miner Reserves metric tracks the real-time balances of BTC depositing in wallets controlled by recognized Bitcoin miners and mining pools. Typically, declining miners’ reserves during a bear market means, the miners are less confident of the short-term price prospects of Bitcoin.
At average prices of $26,700, the 2,271 BTC sold by the miners this week are worth approximately $60 million.
Importantly, the timing of the sell-off as depicted in the chart above shows that the miners began to sell shortly after the Middle East Crisis escalated around October 7. To front-run feared Bitcoin price crash, they began to sell off their block rewards.
The chart above shows a close historical correlation between BTC prices and miners trading activity. Hence, Bitcoin prices will likely drop toward $26,000 at some point this weekend if the miners continue to sell.
Bitcoin Weekend Price Analysis: Potential Reversal Toward $26,000
While the US CPI report boosted Bitcoin investors’ confidence on Thursday, on-chain trends analyzed above clearly show that the Miners are not yet convinced. Technical analysis also supports a mildly-bearish Bitcoin price projection for this weekend.
In the daily time frame, with Bitcoin’s current price at $26,900, the Relative Strength Index (RSI) stands at 49.00, the RSI indicating a neutral stance for the long term. Meanwhile, the Stochastic K value of 30.00, is leaning bearish in the medium term.
Bitcoin (BTC) Weekend Price Prediction | Source: TradingView
The EMA (200) short-term trend also leans slightly bearish, suggesting immediate support levels to watch include the range between $26,700 and $26,100.
On the upside, if the miners get on board and stop selling, BTC could generate some bullish momentum. In that case, the key resistance level to watch will be $27,900. If that resistance level folds, it could trigger a move toward $29,500. scenario.
However, strategic traders and investors will remain attentive to market dynamics and sudden swings in the macro indicators.
This article was originally posted on FX Empire
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