Bitcoin is currently trying to defend against an intense drop below $39,000, proving to be a slight support level for the cryptocurrency.
The intensity and speed of its decline appears to be picking up steam following the prolonged decline below $40,000. This was previously a strong support level for the crypto.
One analyst is now noting that miner selling pressure may place continued pressure on Bitcoin’s price and cause it to see a slight downtrend in the short-term.
At the time of writing, Bitcoin is trading down just over 5% at its current price of $38,200. This marks a notable decline from recent highs of $41,500 that were set under a day ago.
The crypto’s early-morning break below $40,000 placed some serious pressure on it and caused it to see a decline that is rapidly accelerating.
Unless it can hold $38,000 as support, there’s a strong possibility that it faces further selling pressure in the near-term.
One analyst explained in a recent tweet that selling pressure from miners appears to be behind this decline.
He notes that he is flipping short on Bitcoin for the time being due to this trend amongst miners.
“Miner Position Index looks enough to make a local top. They’re selling BTC. I’m going to punt a small short to scalp BTC in this short-term bearish market.”
The coming few days should provide investors with serious insight into whether these miner outflows will be enough to stop its uptrend.