Bitcoin Selling Pressure Intensifies as Price Drops Below $65,000: What’s Driving the Decline?

The recent drop in Bitcoin’s price below $65,000 has sparked concerns among investors, with over $140 million liquidated in the process. While many may attribute this selling pressure to market volatility, a closer look reveals that the main source of this pressure may not be as straightforward as it seems.

Analysis of recent price action shows that Bitcoin is struggling to maintain its position above key support levels, with indicators like the 50 EMA and RSI pointing towards a bearish trend. What’s interesting is that Coinbase, a major cryptocurrency exchange, seems to be playing a significant role in driving this selling pressure.

The Coinbase Premium Gap, which compares Bitcoin prices on Coinbase Pro with other exchanges, is currently negative, indicating that institutional investors are offloading their holdings through Coinbase. Additionally, data from Willy Woo suggests that miners are also contributing to this pressure, with a record level of miner capitulation leading to increased selling activity.

Moreover, a decrease in big USD transactions and a rise in bearish sentiment among investors further highlight the multiple sources of selling pressure on Bitcoin. As more players scale back or sell their holdings, the gap between bullish and bearish addresses widens, signaling a shift towards a bearish market sentiment.

Overall, the combination of these factors paints a complex picture of the current selling pressure on Bitcoin. While market volatility and investor sentiment play a role, the involvement of Coinbase and miners adds another layer to the story. As the cryptocurrency market continues to navigate these challenges, investors will be closely watching for any signs of a potential turnaround.