Bitcoin (BTC) made another brief push above $35,000 on Wednesday, but prices quickly retreated as this level seemed to trigger a substantial number of sell orders, potentially from miners, according to Charles Edwards, the founder of the Bitcoin-focused hedge fund Capriole Investments.
The $35,000 level is considered a monthly resistance point for Bitcoin’s price. This development could lead to a period of consolidation below this level following the cryptocurrency’s significant upward movement, as suggested by Charles Edwards.
Edwards pointed out that Bitcoin miners are currently selling more of their holdings than usual, potentially signaling a consolidation phase. Capriole’s Bitcoin Miner Sell Pressure has increased, indicating that miners are selling a larger portion of their earnings compared to the average.
Despite this short-term consolidation, Edwards remains optimistic about Bitcoin’s prospects, suggesting that it could target the range of $40,000 to $45,000 in the coming weeks as selling pressure subsides. He believes that although the price may temporarily stall at monthly resistance, the next significant challenge lies in the low to mid-$40,000 range, and Bitcoin is likely to reach that level quickly based on the available data.
Bitcoin previously reached a 17-month high of around $35,000 on Monday, driven by expectations for a spot Bitcoin exchange-traded fund (ETF) and other catalysts. Even though the anticipation of a spot ETF approval turned out to be premature, Bitcoin has only experienced a modest retreat from this level.
In contrast to this slight pullback, Bitcoin has outperformed traditional U.S. stock markets over the past 24 hours. While Bitcoin has declined by nearly 2%, the Nasdaq is down by 2.4%, and the S&P 500 is down by 1.4%. The stock market’s renewed decline coincided with a significant 13-basis-point increase in the 10-year Treasury yield to 4.95%. Additionally, concerns over poor Q3 earnings results from Google (which was down 9% on that day) and rising geopolitical tensions have been on investors’ minds.