Bitcoin Traders See Short-Term Bearish Target at $60K as Miners Pare Holdings

Investors are expecting a deeper decline for bitcoin (BTC) in the coming weeks, citing selling activity by miners and general profit-taking despite the strong stock market and positive US crypto policies.

Bitcoin’s upside potential may be limited due to miners’ demand for cash; On-chain data shows an increase in the transfer of BTC from mining pools to exchanges.

The movement of funds into the stock market is often seen as a sign of an impending sell-off.

Investors are predicting a deeper Bitcoin (BTC) price correction in the coming weeks despite a strong stock market and positive US crypto policies due to selling activity from miners and general profit-taking.

“There is a new wave of dollar strength and demand for equities. Risk asset demand is gradually decreasing and a series of intraday highs are falling for Bitcoin,” FxPro senior market analyst Alex Kuptsikevich said in an email to CoinDesk on Friday.

“Bitcoin continues to test the strength of the 50-day moving average, but fails to find sufficient reason to dive lower. Such persistent testing of the lows sets the bears up for quick success with their next target of $60,000.” .

Some observers have said miners or organizations that provide extensive computing resources to keep the bitcoin network running may be among the selling groups.

“Bitcoin’s upside potential may be limited due to miners’ demand for cash,” analysts from Japanese crypto exchange bitBank said in an email. “Since May, the net position (BTC in – BTC out) of Bitcoin miners has been gradually decreasing, indicating that the operations of the Bitcoin network have tightened after the halving in April.”

“Increasing net BTC outflows from miners do not necessarily put pressure on the Bitcoin price. However, prices tend to remain stable,” the analysts added.

On-chain data cited by CryptoQuant in its report on Wednesday showed an increase in the transfer of BTC from mining pools to exchanges; this reached a two-month high on June 9. Sales through professional over-the-counter sales desks also rose to the largest level. The company stated that daily volume has increased since the end of March.

Bitcoin jumped from $68,000 to $70,000 on Wednesday as May US CPI came in cooler than expected. But on Thursday, the price quickly pared back its gains after agencies at the Federal Open Market Committee (FOMC) cut their rate cut forecasts for this year from three to just one.

The story continues

Major tokens like BNB Chain’s BNB, XRP, and Solana’s SOL are down more than 10% since Monday, while risky coins like dogecoin (DOGE) and shiba inu (SHIB) are down 15%.

Such moves come amid sustained outflows from U.S.-listed spot BTC exchange-traded funds (ETFs), with a net $500 million allocated from 11 products since Monday. This marks their worst week since the end of April, when they lost $1.2 billion in six days.

Bitcoin has also seemingly decoupled from the tech index Nasdaq, deviating from its generally positive correlation with that index, which is heavy on tech stocks.

Meanwhile, some market watchers said Ether “looks worse” than Bitcoin in terms of short-term sentiment.

“From a technical perspective, both Bitcoin and Ethereum are trending downwards, but ETH looks worse than BTC,” Rachel Lin, CEO and co-founder of SynFutures, said in a Telegram message. If ETH does not regain the $3,700 level soon, we may see more downside in the coming days and weeks.

“$67,000 remains the critical level for BTC,” Lin said, adding that the long-term outlook remains bullish.