Bitcoin Price Hits Monthly Peak After Fed Announcement
The price of Bitcoin (BTC) reached a new monthly high of $27,500 on September 19 following the US Federal Reserve’s decision to pause rates. However, on-chain data reveals that Bitcoin miners took advantage of the price rally to sell some of their holdings.
Bitcoin Miners Sell 3,495 BTC
After the Federal Reserve meeting, Bitcoin miners sold 3,495 BTC as the price retraced below $27,000. This reduced their cumulative balances from 1,844,854 BTC to 1,841,350 BTC. The miners’ sell-off totaled approximately $93 million based on current market prices.
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Bearish Traders Paying Record Fees
In response to the miners’ sell-off, bearish traders are paying record fees to keep their short positions open. BTC funding rates dropped into negative territory at -0.002 on September 22, indicating growing confidence among short traders that the Bitcoin price will remain bearish in the short term.
Possible Reversal Below $26,000 Before Rebound
The selling frenzy by Bitcoin miners and dominance of bears in the derivative markets could potentially lead to a downward swing below $26,000 in the coming days. However, if long position holders defend their positions around $26,200, it may trigger a rebound.
Hot Take: Bitcoin Price Outlook
Given the current market conditions and the ongoing selling by miners, it is possible for the Bitcoin price to drop below $26,000. However, if bulls manage to reclaim $28,000 and overcome resistance levels, a price increase to $28,000 becomes more likely. Ultimately, market factors and the actions of miners will play a significant role in determining the future direction of Bitcoin’s price.
