Bitcoin (BTC) Price Tumbles Below $65K as Miner Capitulation Hits Record High

It seems that Bitcoin's selling pressure is through the roof again as the first cryptocurrency dropped below $65,000, with more than $140 million liquidated.

Bitcoin price faced another wave of selling pressure on Monday, dropping below the $65,000 level once again. According to data from Coinglass, over $140 million in long positions were liquidated in the past 24 hours.

However, a closer examination of the market reveals a surprising source of this selling pressure.

Coinbase selling pressure, record miner capitulation

Bitcoin price showed signs of struggling to hold on to key support levels. The daily chart shows a sharp decline, breaking below the 50 EMA and approaching the 100 EMA. The RSI also pointed towards building bearish momentum.

Crucially, data shows that Coinbase was the source of this selling pressure. The Coinbase Premium Gap, a metric that compares the price of Bitcoin on Coinbase Pro with those on other exchanges, showed a deep negative premium, indicating that Coinbase was executing sell orders from institutional investors.

A deeper analysis by Willy Woo also highlighted a prolonged period of miner capitulation. The Bitcoin Hash Ribbons, which indicate periods of miner stress and recovery, showed a record level of miner capitulation. According to Woo, Bitcoin typically recovers when the hash rate starts rising again and weak miners drop out.

Moreover, the volume of large USD transactions decreased drastically, indicating that major entities were reducing their holdings or scaling back. The bearish sentiment was further highlighted by the Bulls and Bears indicator, which showed a majority of bearish addresses.

The gap between bullish and bearish addresses widened, indicating that more investors were selling than buying.

Together, these multiple metrics pointed towards several sources of selling pressure. Coinbase appeared to be a major driver, with large volumes of Bitcoin being sold on the platform. Furthermore, the extended miner capitulation phase exacerbated the selling pressure as miners sold their holdings to cover operating costs.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-price-tumbles-k-miner-capitulation-hits-record.html

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