Bitcoin price is 'stuck' at $30K — Here are 3 reasons why
Bitcoin (BTC) has spent almost a month at or near $30,000, but this is no coincidence, new analysis claims.
In one of its Quicktake market updates on July 17, on-chain analytics platform CryptoQuant highlighted three key factors keeping BTC price action in the same place.
Bitcoin has rebuffed any attempt at a breakout for weeks on end, making casual one-year highs but always falling lower afterward.
For CryptoQuant contributor Axel Adler, this has roots — among other things — in speculative trading.
Short-term holders (STHs), he notes, have divested themselves of their holdings since April, leading to increased selling pressure above $30,000.
“This group is actively selling off their Bitcoin reserves, exerting significant pressure on the market,” he wrote.
CryptoQuant defines STHs as entities hodling coins for six months or less.
Other recent data from on-chain analytics firm Glassnode led analysts to the conclusion that the STH cost basis — recently around $26,400 — is likewise keeping BTC price action afloat in times of more pronounced downside pressure.
Bitcoin miners are also on the radar this quarter as higher BTC prices spark an uptick in sales.
For Adler, selling BTC holdings to cover expenses ahead of the block subsidy halving in 2024 marks another factor influencing price performance today.
“Miners are actively selling their Bitcoin reserves,” he summarized.
As Cointelegraph reported, mining pool Poolin recently contributed extensive exchange inflows, sending large tranches of BTC to Binance. This has since become a topic of speculation in its own right, amid rumors over the pool’s financial buoyancy.
Bitcoin volatility remains among its lowest in terms of historical context.
Related: BTC traders brace for $30K loss — 5
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