Over the past few days, the price of Bitcoin (BTC) has been hovering between $100,000 and $102,000 after multiple failed attempts to enter higher price zones.
Despite breaching the $100,000 price threshold in early December, the major cryptocurrency has seen a slowdown in its bullish momentum in the fourth quarter, rising only a little over 4% so far in the final month of 2024. Amid this halt in price growth, the latest data on Bitcoin miners transactions may indicate additional investor concerns.
Bitcoin miners’ resources drop to 1.95 million BTC
According to renowned crypto expert Ali Martinez, Bitcoin miners recently did just that shed significant amounts their farms. Based on According to Santiment data, these miners have sold over 140,000 BTC worth $13.72 billion so far in December, reducing their existing supply from approximately 2.08 million BTC to 1.95 million BTC.
Overall, the massive decline in Bitcoin mining stocks could indicate potential weakness in the BTC price. Moreover, this could create downward pressure on the asset price, especially if the newly released supply exceeds market demand.
Moreover, while Bitcoin miners can simply liquidate their holdings to cover operating costs, larger market sales like the one reported by Martinez could suggest financial constraints and the potential capitulation of miners that comes with a prolonged bear market.
So far, the BTC price has yet to show any significant reaction to the decline in mining companies, with the asset only experiencing short-term price declines following a piercing price crash and rejection at the 102,000 price area.
BTC heading towards $176,000 target?
In other news, a market analyst with the username X Egrag Crypto supported his prediction for Bitcoin to reach $176,000 in the current bull cycle. Using Fibonacci levels to identify potential support and resistance levels, Egrag Crypto provided this price prediction ahead of Bitcoin’s November price surge.
With the virgin cryptocurrency currently trading at $101,000, the analyst predicts that BTC will hit its first price target of $105,000, opening a low for a price escalate to $130,000. Bitcoin is then expected to rise to $176,000, which could represent a local high for this bull cycle. Interestingly, Egrag also predicted the next bear market target, indicating that BTC could fall in the $33,000-$44,600 range at the end of the bull cycle.
At the time of writing, BTC is trading at $101,870, reflecting an escalate of 1.56% over the last seven days. Meanwhile, the asset’s trading volume dropped by 36.10% and is valued at $37.44 billion.
Featured image from Bloomberg News, chart from Tradingview
