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Recent market movements have sparked worries that Bitcoin (BTC) might be on the verge of another downturn, as indicated by the daily closing price suggesting possible weakness.
Bitcoin miners could play a vital role in averting a significant drop, assuming the exchange flow remains consistent.
Benjamin Cowen, the founder of Into The Cryptovers, has indicated that Bitcoin might be approaching a death cross. Cowen shared his insights on X (formerly Twitter), highlighting that a death cross could result in lower highs, which are already beginning to appear.
A death cross is defined as the short-term Moving Average (MA) falling beneath the long-term MA, generally signaling price weakness in Bitcoin’s market chart.
The emergence of lower highs, where the closing price is below the previous day’s high, could further exacerbate Bitcoin’s potential decline.
Cowen had earlier forecasted lower highs for Bitcoin on September 12 when BTC was nearing $27,000. However, Bitcoin’s price movements have largely stabilized over the past week.
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Conversely, Vladimir Toporkov, Chief Marketing Officer at stablecoin payment company Edelcoin, maintains a positive outlook on Bitcoin’s prospects. Toporkov suggested that Bitcoin could reach as high as $30,387 in the fourth quarter (Q4), though he recognized that the coin’s volatility would be tested.
Toporkov also mentioned that the sentiment surrounding Bitcoin ETF applications might resurface and advised investors to exercise caution, especially as the year-end approaches, a time when many large holders typically realize profits.
In a separate analysis, IT Tech, an on-chain analyst, assessed Bitcoin’s current status and the potential influence of miners on its price. Previously, miners had been liquidating some of their holdings, adding to selling pressure.
However, IT Tech’s analysis revealed that the seven-day miners-to-exchange inflow had stabilized. This metric indicates the total number of coins miners possess and transfer to exchanges. An increase in this metric usually suggests a selling intention, while a decrease indicates the opposite.
As of September 28, the metric had fallen to 125.54, a significant drop from the previous day’s level of 1200. This decline suggests that Bitcoin may only encounter considerable selling pressure if the metric experiences a sudden surge.
IT Tech concluded the analysis by warning that miners’ reserves remained stable. While they do exert some selling pressure, it is particularly evident during times of low trading volume and sluggish price movements.
The post Bitcoin’s Price Outlook Amidst Warning of a Potential Death Cross appeared first on BitcoinWorld.
