Bitcoin ETF

Bitcoin

Bitcoin’s price tumbled to a weekly low of $50,664 on Feb. 21, narrowly avoiding massive liquidations; on-chain data analysis pinpoints the likely causes of the recent pullbacks.&nbsp; 
After a remarkable 27% February uptick that saw Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) hit a 3-year peak of $52,985 on Feb. 20, Bitcoin is struggling to maintain momentum.&nbsp; 
With miners ramping up profit-taking ahead of the upcoming <a href="https://crypto.news/next-bitcoin-halving-just-15k-blocks-away/" data-type="post" data-id="14236096" target="_blank" rel="noreferrer noopener">halving event,</a> a decline in ETF inflows threatens to scuttle the BTC price rally.&nbsp; 
<h2 class="wp-block-heading" id="bitcoin-miners-sold-btc-worth-8-2-billion-in-previous-30-days">Bitcoin miners sold BTC worth $8.2 billion in previous 30 days</h2> 
Bitcoin price dipped $50,664 on Feb. 21, sparking concerns of widespread liquidations as the bears looked to break below $50,000 for the first time since the <a href="https://crypto.news/bitcoin-price-sets-valentines-day-winning-record-can-it-reach-55k/" data-type="post" data-id="14248625" target="_blank" rel="noreferrer noopener">Valentine’s Day</a> rally. Market data shows the Bitcoin miners’ selling trend, and a slight blip in ETF inflows this week contributed to the pullback. 
Bulls have managed to stage an instant rebound toward $51,500 at press time on Feb. 22, but a closer look at the on-chain data trail suggests the bull rally is not yet back on track.&nbsp; 
Cryptoquant’s miner reserves metric monitors real-time balances held by BTC miners.&nbsp;It shows that BTC validators hold a cumulative balance of 1,824,201 BTC as of Feb. 22, a 160,000 BTC decline from the balances held on Jan. 31.&nbsp; 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="937" src="https://crypto.news/app/uploads/2024/02/image-67.png" alt="Bitcoin (BTC) miners cut reserves by 160,000 BTC (~$8.2 billion) between Jan. 31 to Feb. 22, 2024 " class="wp-image-14251494">
 <figcaption class="wp-element-caption">
 Bitcoin (BTC) miners cut reserves by 160,000 BTC (~$8.2 billion) between Jan. 31 to Feb. 22, 2024 | Source: <a href="https://cryptoquant.com/asset/btc/chart/miner-flows/miner-reserve?miner=all_miner&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line" target="_blank" rel="noopener">CryptoQuant</a>
 </figcaption>
</figure> 
Valued at about $51,500 per coin, the recently-traded 160,000 BTC are worth approximately $8.2 billion. Notably, the chart illustrates how the miners had intensified the selling frenzy by $102 million after BTC’s price hit a local peak of $52,858 on Feb. 15.&nbsp; 
Typically, a sell-off among miners indicates a bearish sentiment among a significant bloc of stakeholders. With approximately 10% of the total circulation supply in their custody, the BTC miners significantly influence Bitcoin price action.&nbsp; 
Without a commensurate demand surge, it is unsurprising that the latest wave of miners’ sell-off has coincided with Bitcoin prices tumbling to a weekly low.&nbsp; 
<h2 class="wp-block-heading" id="bitcoin-etfs-have-not-kept-up-last-week-s-demand">Bitcoin ETFs have not kept up last week’s demand </h2> 
The BTC price rally in the first half of February was attributed to the Bitcoin ETF making record-breaking inflows.&nbsp; 
Ahead of the ETF’s weekly trading opening on Feb. 19, BTC hit a new 2024 peak in the early GMT hours as strategic investors looked to front-run potential gains if the ETFs pick up the buying trend from where they left off in the previous week. But that has not happened.&nbsp; 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="430" src="https://crypto.news/app/uploads/2024/02/image-66.png" alt="Bitcoin ETFs dialed down their buying trend this week. Feb. 19 - Feb. 22" class="wp-image-14251493">
 <figcaption class="wp-element-caption">
 Bitcoin ETFs dialed down their buying trend this week. Feb. 19 – Feb. 22 | Source: <a href="https://www.theblock.co/data/crypto-markets/bitcoin-etf/spot-bitcoin-etf-onchain-holdings" target="_blank" rel="noreferrer noopener">TheBlock</a>
 </figcaption>
</figure> 
For context, TheBlock’s ETF on-chain flow chart above shows historical changes in BTC balances held by Bitcoin ETF.&nbsp; 
Unlike last week’s 17,480 BTC accumulation, Bitcoin ETFs have slowed the buying trend by 73%, acquiring only 4,680 BTC between Feb. 19 and Feb. 22. 
In summary, there has been a decline in ETF demand this week, while miners are intensifying their selling spree ahead of the halving.&nbsp; 
The two critical factors have been pivotal to BTC price tumbling towards $50,000 rather than breakout towards a new all-time high above $60,000 as the bulls anticipated, with the rapid accumulation ahead of the ETF trading hours on Feb. 19.&nbsp; 
<h2 class="wp-block-heading" id="price-forecast-bitcoin-can-hold-above-48-500">Price forecast: Bitcoin can hold above $48,500&nbsp;</h2> 
Amid dwindling ETF demand and miner’s mounting selling frenzy, BTC price looks likely to hold above $48,500 if it loses the $50,000 psychological support level in the short term. 
The Bollinger Band technical indicator further underscores this outlook by providing insights into potential support and resistance levels for Bitcoin’s short-term price movement.&nbsp; 
With the 20-day Simple Moving Average (SMA) price currently at $48,560, it is a crucial support level below the $50,000 threshold.&nbsp; 
This suggests that if the price were to drop below $50,000, the $48,560 level may act as a significant area of support, potentially halting further downward momentum. 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="682" src="https://crypto.news/app/uploads/2024/02/image-68.png" alt="Bitcoin (BTC) Price Forecast, February 2024" class="wp-image-14251495">
 <figcaption class="wp-element-caption">
 Bitcoin (BTC) Price Forecast, February 2024 |&nbsp; Source: <a href="https://www.tradingview.com/x/TkF8em4P/" target="_blank" rel="noreferrer noopener">TradingView</a>
 </figcaption>
</figure> 
If bullish momentum prevails and Bitcoin reclaims the $53,000 level, the upper Bollinger band indicates that the bears may emerge again, establishing a sell-wall at around $55,830.&nbsp; 
This signifies a key resistance level that could impede upward movement, potentially leading to a consolidation phase or a pullback. 
Given these technical dynamics, strategic swing traders may consider setting short-term stop-loss orders around the $45,000 area to manage risk in case of a breakdown below the $48,560 support level.&nbsp; 
Conversely, bullish traders may target take-profit orders around the $55,000 mark, anticipating potential resistance near $55,830 and aiming to capitalize on any further upward movement.

Bitcoin miners enter $8.2b selling spree: $60k price rally at risk?

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