CryptoQuant Boss Believes that Profit-Taking by Miners is Responsible for Bitcoin’s Descent

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Bitcoin (BTC) has been having a difficult time over the past few days, as the price continues to struggle to close the gap to its recent highs. The price dynamics surrounding the benchmark cryptocurrency appears to be tilted in favor of bears in the past few days, with Bitcoin recording a sharp decline below the $30k mark on the 21st.

The Chief Executive Officer of CryptoQuant, a leading cryptocurrency analytics firm, noted that the reason for BTC’s recent bearishness could be tied to the fact that Bitcoin miners have been cashing out their profits since the cryptocurrency printed a new all-time high around $42k.

The CEO, Ki-Young Ju, elucidated that “BTC Miners’ Position Index has hit an 8-year high. They’ve been moving an unusual amount of Bitcoins lately. It seems they’re continuously realizing profits since 42K. This is one of the reasons why I keep my bearish bias.”

Meanwhile, recent reports show that the amount of stablecoins domiciled on exchanges at the moment has hit an all-time high. CryptoQuant notes that there’s about $4.16 billion in stablecoins relegated to the sidelines. This indicates that crypto bulls have taken flight at the moment and are possibly looking for better conditions to buy back Bitcoin and other crypto assets.

Yesterday marked yet another “Black Monday” in the cryptocurrency space, as almost all large-cap cryptocurrencies were in the red.

Key BTC Levels to Watch — January 26

Bitcoin remains under heavy selling pressure, as all trace of its recent parabolic bull run appears to have faded. To tap back into this lost momentum, BTC has to record a sustained break above the $37,827 mark, more than $5,500 from its current price.

That said, the immediate worry for BTC bulls lies at the $33,100 level, which has proven to be a strong supply level.

Meanwhile, our key resistance levels are at $33,100, $34,000, and $35,000. While our key support levels are at $32,000, $31,000 and $30,000.

Total Market Capitalization: $947 billion

Bitcoin Market Capitalization: $595 billion

Bitcoin Dominance: 62.8%

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