With Bitcoin’s price persistently drifting below its 200-day moving averages and substantial selling among miners discovered, some experts are bracing for more bearish momentum.
The crypto markets are on the verge of collapsing, with Bitcoin falling below $33,000 for the first time since May 23 and Ethereum also breaking below support at $2,500.
The negative trend comes as bearish indications for Bitcoin continue to pile up, with famous analyst William Clemente III noting that miners sold more over 5,000 BTC over the previous week, which is worth around $164 million at current rates.
Miners have sold over 5,000 BTC in the last week pic.twitter.com/5pEvLgIls2
— William Clemente III (@WClementeIII) June 7, 2021
BTC’s price has also stuck below its 200-day simple moving average (SMA) for 17 days in a row, according to cryptocurrency expert Timothy Peterson.
“This metric has *always* signalling the end of a bull run and the beginning of a bear market,” he said.
#Bitcoin price has dropped below 200-SMA for 17 consecutive days and counting. This metic has *always* marked the end of a bull run and the start of a bear market. pic.twitter.com/6dpiFbUI7A
— Timothy Peterson (@nsquaredcrypto) June 7, 2021
Although the markets appear to be posting a small intra-day bounce — with BTC currently hovering near $33,000 after dropping to $32,400 and ETH currently changing hands for $2,500 after bouncing off a local low of roughly $2,430 — both markets have crashed roughly 15% since reaching respective local highs of $39,600 and $2,900 on June 3.
While both Ether and Bitcoin have lost value in recent weeks, capital flows for crypto investment products indicate that institutional investors are shifting their focus to Ether.
According to a CoinShares report dated June 7, Bitcoin investment products had record withdrawals of $141 billion this week, while Ether products experienced inflows of $22 million.