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The beginning of the Chinese New Year; Analysts say prices are likely to fall

While the price of Bitcoin is trying to cross the $ 35,000 mark again, some analysts predict that increased selling pressure from miners as the Chinese New Year approaches could lower its price.

To Report The Bitcoin Telegraph, the price of Bitcoin that was able to reach the range of $ 38,500 yesterday after Elon Musk’s tweet, is now trading at $ 34,500.

The sudden rise in the price of bitcoin has been attributed in part to Elon Musk, who changed his Twitter account to the “bitcoin hashtag”. Musk subsequently sent a mysterious tweet:

Looking back, it can be seen that this was inevitable.

Dogecoin also made a lot of noise on Twitter. The digital currency broke its historic high on Thursday, reaching $ 0.078. Dogecoin is currently priced at around 41% and is trading in the range of $ 0.045.

Advances to DOGE and the Wallstreetbets Association (r / Wallstreetbets) led to the FTX exchange creating an index with the same name and symbol (WSB). It tracks the stock prices of Nokia, BlackBerry, AMC Theaters, GameStop, Silver (SLV), Dogecoin and FTX tokens using their adjusted average prices.

The behavior of the popular Reddit group was not far from the opinion of the US Securities and Exchange Commission (SEC). The commission said it would closely monitor Robinhood’s performance in dealing with GameStop stock trading on its platform.

Bitcoin prices and sale of miners

Despite increasing volatility in recent days, large-scale investors and institutional investors continue to show interest in bitcoin. They are willing to pay a premium to buy bitcoins through CME futures contracts.

Even the increasing pressure of selling miners has been able to meet the demand of these investors. Miner sales have been unprecedented since July 2019. At that time, the price of Bitcoin was in the range of $ 14,000. CryptoQuant data show that, unlike in previous years, increasing miner sales does not act as a negative factor in the market.

Output current from miners
Output current from miners

Lennard Neo, director of research at Stack Funds, believes that with the Chinese New Year approaching, the pressure to sell miners is likely to continue in the short term. He said about this:

Miners as the New Year approaches [چینی], They close more and more situations day by day. This shows that the price floor at which miners do not sell their bitcoins has not yet shown itself. We expect these fluctuations to continue in the coming weeks.

Defy noise and attracting large grain investors have been cited as factors in the rise in bitcoin prices. As the Chinese New Year approaches, the most important support for Bitcoin is $ 34,000. If Bitcoin grows, $ 38,000 is one of the resistances on the chart.

Yesterday we saw the expiration of the $ 4.9 billion Bitcoin futures contract. This had little effect on the market. Among the highlights of the past week are the developments in GameStop and Robin Hood stocks.

Traditional markets were also accompanied by increased sales pressure. This pressure caused the S & P500 index to record its worst week. The Dow Jones, Nasdaq and S & P500 را outperformed yesterday by losses of 2.03, 2 and 1.93 percent.

Altcoins Market

At the same time as the bitcoin price jump, the coin market is having a good time. The Dogecoin leap made the digital currency one of the top 10 quintals on the market.

Ripple and Stellar also jumped 9 percent. On the other hand, the VGX‌ token has grown by about 50% in the last 24 hours and is trading in the $ 2.22 range.

Bitcoin price chart
Bitcoin price chart

The total market value of digital currencies is currently about $ 1 trillion, and Bitcoin has a 63.5% market share.


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