4 reasons why Bitcoin’s price went down

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Source: Pixabay

Bitcoin ^[1] has surged a whopping 100% in the last 30 days, however, the recent crash might indicate that the top is in, or at least an interim top. While the investors were FOMO-ing, bitcoin’s on-chain indicators flashed sell-signals.

The main reason why this crash took place is due to bitcoin miners ^[2]. In fact, bitcoin’s recent surge, in part, is to be credited to the miners, since they stopped selling their bitcoins during the rally.

Source: CryptoQuant

As seen in the image, the Miners Position Index hit 2019 highs and indicated that the miners started selling. Moreover, the 1st spend chart from ByteTree shows that $47 million ^[3] worth of BTC was seen flowing out of miners’ wallets and into exchanges reconfirming the recent drop.

Bitcoin’s price has dropped 20% in the last 20 hours as a retracement to the parabolic run seen in the last 2, 3 months.

BTCUSD ^[4] TradingView

The next support levels that could cushion the drop include $34,000 and $32,700.

Other on-chain indicators

Other on-chain indicators predicted a potential crash long before the actual crash happened.

Source: Lookintobitcoin ^[5]

MVRV Z-score is an indicator that considers bitcoin’s realized market cap, the actual market cap, and calculates its standard deviation to identify cycle tops and is a derivation of the MVRV metric.

At press time, MVRV is at a level last seen in 2017, hinting that the

4 reasons why Bitcoin’s price went down

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