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🔥 Stubbornness of bulls and dumping of miners: «hot» problems of the crypto market⠀
⚠️ Unreasonable enthusiasm of buyers always adds more negative than speculative sales. Two misconceptions − «Bitcoin will save the world» and «miners are killing the rate» − are equally dangerous for the market, as they both distort the real situation.
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As an argument against the first thesis, it suffices to point out the correlation of bitcoin with US technology stocks − this connection is strengthened and makes BTC too risky an asset.
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With the second delusion, everything is more complicated. Recall: mining is a regular business that requires real funding. It is quite logical that miners compensate for part of the costs by selling a certain amount of a part of the mined coins.
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There is no reason for serious panic: major coins such as BTC, ETH, and
XRP are tightly integrated into various investment processes, and a serious infrastructure has been created for them so that they will not disappear from the market («too big to fall» principle).
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There is no sharp increase in sales: MA(14) outflow from miners' wallets has reached a plateau and has not changed for several months, during which there were only two bursts of activity − April 1 and May 11. Miners are well aware that they are selling assets below the market rate, so this is not dumping, but the reasonable behaviour of people with huge capital.
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But BTC has been in a «bearish» state for more than 6 months and there are no strong fundamental factors to improve the situation. Analysts are considering scenarios in which quotes could go below $20,000, and the longer the price is kept from falling, the lower it will fall. Even the $10,000-12,000 zone may well become relevant.
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So we recommend using weak growth impulses only for profit-taking and opening new short positions
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Profits to y’all!