Bitcoin miners start selling off – is the next downtrend starting now?

Signal for the market?

The large sale of Bitcoin stocks naturally raises some questions. While the analysis platform Glassnode recently found that mining companies are accumulating their stocks, this sell-off within 72 hours is causing great uncertainty. The release of 30,000 Bitcoin could trigger another domino effect, which could lead to another price slide. Despite the strong selling pressure, however, the Bitcoin price chart did not show any corresponding downward swing. In the 7-day comparison, the price continues to rise by 3.8 percent and is currently at 58.276 US dollars. In the 24-hour comparison, hardly anything changed, and the announcement of the interest rate cut by the European Central Bank also had no significant impact on the Bitcoin price.

Miners under pressure

Nevertheless, Bitcoin miners are under considerable pressure. The reduction in the reward following the Bitcoin halving in April has made conditions extremely difficult. In addition, the mining difficulty, i.e. the difficulty of solving a block and receiving the reward, has increased significantly.

It is believed that the large mining companies have invested heavily in hardware in anticipation of the expected bull run, which significantly increases the computing power in the Bitcoin network. This often makes it almost impossible for smaller companies to mine profitably.

Technical chart analysis

Despite these challenges, the technical indicators look promising. For example, the RSI is in the neutral zone, and the sentiment data also shows a balanced ratio, which offers room for an upward movement. The analysis platform CoinCodex believes: “According to our current Bitcoin price forecast, the price of Bitcoin is expected to increase by 39.84 percent and reach a value of $81,035 by October 13, 2024. According to our technical indicators, the current sentiment is neutral, while the Fear & Greed Index shows a value of 32 (fear). Bitcoin recorded 15 out of 30 (50 percent) green days in the last 30 days with a price volatility of 4.23 percent. Based on the Bitcoin forecast, it is currently a good time to buy Bitcoin.

Positive outlook for Bitcoin, source:

If this prediction comes true, an upward movement in the market could be on the horizon. ICOs in particular are showing enormous strength, as many investors are investing their capital in these young crypto projects in the medium term in order to benefit from the price increases until the launch. One of these promising projects is currently Pepe Unchained ($PEPU), a new cryptocurrency that wants to launch its own blockchain at the same time.

Here for the Memecoin Layer 2 combination Pepe Unchained.

Crypto market is growing especially with these narratives

While many cryptocurrencies specialize in a specific area, the developers of this project want to address two high-growth narratives in the crypto market. On the one hand, they aim to reach a broad audience with the humorous memecoin vein, and on the other hand, they want to create a long-term basis for future expansion through the technological advancement of an Ethereum Layer 2 blockchain. By using this technology, transaction speeds can be increased by 100 times compared to Ethereum, while transaction costs are significantly reduced.

With this basis, the developers want to create a new ecosystem in the crypto space where new meme coins or other decentralized financial products can find their home. These promising prospects seem to please investors, as over 13 million US dollars have already been raised for the development and launch of the native token. Anyone who also wants to invest in the project should hurry, because in a few hours the price of the coin will continue to rise, which could reduce the potential book profits until the launch on the decentralized exchanges.

Get your Pepe Unchained token in pre-order here.

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