Crypto Analyst Warns of Potential Bitcoin Downtrend

A recent analysis by prominent crypto pundit Ali Martinez highlights potential downside risks for Bitcoin based on the current distribution of BTC supply. Data from IntoTheBlock indicates that approximately 5.45 million addresses acquired around 3.03 million BTC in the $64,300 to $70,800 price range, forming a significant supply barrier. If Bitcoin’s price falls below this level, these holders may begin selling to minimize losses, increasing selling pressure and potentially triggering a steeper price decline.
This could exacerbate market negativity and induce panic selling among other investors. Bitcoin’s price currently stands at $64,460, showing a 0.2% increase over the past 24 hours.
Additionally, Bitcoin miners have been offloading substantial amounts of BTC. Over 30,000 BTC, valued at about $2 billion, have been sold since June, marking the fastest decline in miner reserves in over a year. This sell-off is attributed to reduced profitability following the recent halving event in April 2024, which cut miners’ rewards from 6.25 BTC to 3.125 BTC. This miner capitulation adds further selling pressure to the market.