Over the past week, the world’s largest cryptocurrency Bitcoin (BTC) has been under selling pressure. At the time of writing, Bitcoin is trading 1.59% lower at a price of $22,118 and a market cap of $23 billion.
On-chain data provider Glassnode recently reported that nearly 40,000 Bitcoins from wallets linked to US government seizures are currently on the way. While a majority of them appear to be internal transfers, some have also moved to crypto exchange Coinbase.
Glassnode notes: “about 9,861 $BTC seized by the Silk Road hacker have been sent to our Coinbase cluster.”
As mentioned, Bitcoin is still facing selling pressure and showing weakness in the charts too! Citing data from IntoTheBlock, popular crypto analyst Ali Martinez reported:
Bitcoin fell below a critical area of support between $23,050 and $23,730 where 1.63 million addresses bought more than 910,000 $BTC. Failure to reclaim this area as support could lead to a sell-off that pushes #BTC up to $20,700 or even $19,300.
On the other hand, the total number of Bitcoin addresses exceeding 1,000 Bitcoins has also dropped in the past week. Nearly 24 such Bitcoin addresses have redistributed their Bitcoins and removed them from the network in the past week.
Bitcoin and macros
Currently, Bitcoin bears appear to be in a dominant position against the bulls. As Bitcoin continues to slide below its crucial support level, some analysts are also predicting that BTC price could fall further below $20,000.
On the other hand, macro factors do not seem to support a further rally at this point. Fed Chairman Jerome Powell testified before the U.S. Congress on Tuesday that the central bank will continue with more rate hikes and is committed to bringing inflation below 2%.
On Tuesday, a US court judge challenged the SEC over the denial of the Bitcoin ETF mockery. As a result, the GBTC share price continued to rise.
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