These 5 charts show why Bitcoin price didn’t break USD 35,000


Bitcoin (BTC) fell towards $ 30,000 on Jan. 26 after higher levels evaporated and fresh miner outflows appeared to be stifling price movements.

The BTC price rally is turning sour

Data from Cointelegraph Markets and Tradingview showed the largest cryptocurrency reversed abruptly as it approached $ 35,000 at the start of the trading week.

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At the time of writing, BTC / USD was closer to USD 31,000, which translates into more than 5% 24 hour losses.

A combination of factors, all of which indicate short-term profit-taking among market participants, emerged on Monday to deter the bulls from hitting prices.

BTC / USD 1 hour candle chart (Bitstamp). Source: TradingView

Miners are probably still selling

Data shows that miners’ outflows – funds leaving mining pools – continued to rise this week. As Cointelegraph reported, last week’s price jump came when F2Pool’s largest pool saw large outflows for several days. This time, however, smaller miners took the lead.

Small miner drainage diagram. Source: CryptoQuant

Drains may not specifically indicate that miners are selling BTC, but they do show that mined coins are moving, possibly to places where they will be part of a trade.

According to on-chain analytics resource CryptoQuant, total outflows this week were down from last week but still up compared to the last few months.

Chart of total miners outflows. Source: CryptoQuant

Exchange flows positively for Bitcoin

As for the exchanges, traders seemed nervous about market strength. In contrast to the behavior during the vertical price growth of Bitcoin at the turn of the year, the net inflows to the exchanges have been positive in the past few days.

Compiled by Glassnode, an on-chain monitoring resource, data tracking from major exchanges found that around $ 108 million more was deposited than withdrawn on Monday.

Conversely, shipments of the largest altcoin Ether (ETH) to trading platforms decreased by $ 47 million, while Tether (USDT) increased by $ 65 million.

Removing coins from exchanges means that the holders do not intend to trade or sell them, but instead put them back in purses with hot or cold storage.

Coins are very active

There are more active Bitcoin addresses than ever before, while BTC stocks have continued to move in the past few days.

Bitcoin Days Destroyed, which measures the amount of each transaction on the Bitcoin network versus how long it has been since the coins involved were last moved, hit a three-month low this week.