The Current Supply Barrier Impacting Bitcoin Price

A crypto analyst has highlighted a concerning trend in the distribution of Bitcoin supply that could lead to further price declines. As per data from IntoTheBlock, over 5.45 million addresses have acquired approximately 3.03 million BTC within the price range of $64,300 to $70,800, creating a significant supply barrier at this level.

When the Bitcoin price dips below this range, holders within this supply barrier might be inclined to sell, triggering additional selling pressure and potentially exacerbating price corrections for BTC. This scenario could also impact market sentiment, leading to panic selling among other investors and further downward pressure on the price of Bitcoin.

Currently, the Bitcoin price hovers around $64,460, showing a marginal 0.2% increase over the last 24 hours.

Bitcoin Miners’ Role in Price Volatility

Aside from individual investors, Bitcoin miners have also played a significant role in the recent selling pressure surrounding the cryptocurrency. Data from IntoTheBlock reveals that miners have sold more than 30,000 BTC (worth around $2 billion) since June, marking the sharpest decline in their reserves in over a year.

This sell-off can be attributed to reduced miner profitability following the fourth halving event in April 2024, which halved their rewards from 6.25 BTC to 3.125 BTC. The accelerated rate of BTC sell-off by miners adds to the overall market volatility and could impact Bitcoin’s price trajectory in the near future.

Featured image from iStock, chart from TradingView