Bitcoin Selling Pressure Intensifies: Coinbase and Miner Capitulation Key Factors

The selling pressure on Bitcoin has reached new heights as the cryptocurrency dropped below $65,000, resulting in over $140 million being liquidated. However, the main source of this selling pressure may not be as obvious as it seems.

Recent price movements have shown that Bitcoin is struggling to maintain its position above crucial support levels. With indicators like the 50 EMA and the 100 EMA showing signs of weakness, the daily chart is displaying a significant decline. Additionally, the RSI is indicating a growing bearish momentum in the market.

One key factor contributing to this selling pressure is Coinbase, a major cryptocurrency exchange. The Coinbase Premium Gap, which compares Bitcoin prices on Coinbase Pro with other exchanges, is currently negative. This suggests that Coinbase is executing orders from institutional investors looking to sell their holdings.

Moreover, analysis by Willy Woo has revealed a prolonged period of miner capitulation. The Bitcoin Hash Ribbons, which track miner stress levels, are currently at record levels of capitulation. Historically, when the hash rate starts to rise again and weaker miners exit the market, Bitcoin tends to bounce back.

Furthermore, a significant decrease in the volume of large USD transactions indicates that major players are either reducing their positions or selling off their holdings. The Bulls and Bears indicator, which highlights the balance between bullish and bearish addresses, is leaning towards the bearish side. This suggests that more investors are selling rather than buying, leading to a widening gap between the two.

Overall, the combination of these factors points to multiple sources of selling pressure on Bitcoin. With Coinbase facilitating large sell orders and miners liquidating their holdings, the market is experiencing intense downward pressure. As investors navigate these challenging conditions, the future trajectory of Bitcoin remains uncertain.