Bitcoin Dips By Nearly 5%: Did Miners See This Coming?

Sahana Kiran
Source – Unsplash

Bitcoin and the collective crypto market faced their first drawdown in March 2023. The increased long liquidations caused Bitcoin [BTC] and Ethereum [ETH] to crash. BTC dropped to its lowest level in about two weeks. This drop was attributed to the drama surrounding the prominent bank Silvergate.

Earlier today, BTC dipped all the way to a low of $22,241.78 from a high of $23,540.16. At press time, the king coin was trading around $22,390.24 with a 4.77% daily drop.

Source – BTC/USDT Chart on TradingView

As seen in the above chart, Bitcoin broke two levels of support. The asset’s immediate support at $23,226 was shattered, followed by $22,876. The sellers did not wait too long. The Relative Strength Index [RSI] indicator noted that BTC was being oversold at the moment.

The latest price change in Bitcoin did not sit well with the cryptocurrency community.

A few others, however, were happy that the king coin could be purchased at discounted prices.

Binance’s CEO Changpeng Zhao also endorsed a similar notion. He said,

“Some people are often jealous of the others who bought the last dip. Don’t be that guy tomorrow. Not financial advice. Not calling dips or tops. Just saying in general.”

Despite the asset’s latest plummet, more than half of its holders were still in profit. According to Into The Block, 62% of BTC holders were making money at the asset’s current price. Only 35% were not.


Bitcoin miner reserves take a plunge

Bitcoin miners were finally active after a harsh 2022. Bitcoin’s hash rate hit an all-time high just earlier this week. Despite this and Bitcoin’s February rally, miners in the network were on a selling spree.


The above chart notes the drastic drop in miners’ reserves throughout the week. Additionally, this decline came right before today’s crash. Therefore, the community speculated that these Bitcoin miners could have seen this coming, which prompted them to sell their funds. The narrative might be the other way around as well, with miners selling 24 hours before the drop.

FUD from the Silvergate fiasco led to market panic, and BTC’s market crumbled under pressure. In terms of recovery, it is still early to establish a local bottom, since the price may gradually slide further over the weekend.