Summary:
- The number of Bitcoin transactions by BTC miners to all crypto exchanges has hit a yearly high
- Selling could be linked to profit-taking ahead of the Chinese new year that begins next month
- Bitcoin analyst, MagicPoopCannon, forecasts a dip to $22k before any further growth by BTC
The month of January 2021, has seen record levels of Bitcoin transactions by BTC miners to all crypto exchanges. This is according to the team at Unfolded who made the observation via the following statement and two charts courtesy of CryptoQuant.com.
Miner bitcoin outflows at record highs. Transactions from all miners to all exchanges hit a yearly high.
High Bitcoin Miner Transactions Could be Linked to the Chinese New Year
The high Bitcoin transaction count and BTC inflow by miners to crypto exchanges could be linked to profit-taking ahead of the Chinese New Year. This year, the sixteen-day New Year event will begin on the 12th of February and is celebrated via various events, food and travel.
It is a widely known fact that majority of the Bitcoin mining is carried out in China. Therefore, Bitcoin miners will most likely want to take a few days off to celebrate the New Year with family and friends. Chances are that funding for such activities will be sourced from Bitcoin sold via crypto exchanges.
Bitcoin Could Collapse to $22k Before Another Leg Up
At the time of writing, Bitcoin is currently exhibiting some signs of weakness after failing to conquer the $38k price area after the hype surrounding Elon Musk’s actions of adding ‘Bitcoin’ to his bio. The King of Crypto is hovering around the $33,700 price area and could sink lower with tomorrow’s weekly and monthly close.
The weakness by Bitcoin has not gone unnoticed with popular BTC and Crypto analyst, MagicPoopCannon, forecasting that a correction below $22k is in the pipeline before further growth. He explained:
Despite the recent volatility, I still believe there is a higher probability that BTC will fall to 22000, before it breaks out to new all time highs.