Bitcoin Price Is ‘Stuck’ At $30K – Here Are 3 Reasons Why

New analysis claims that Bitcoin (BTC) has spent nearly a month at or near $30,000, but this is no coincidence.

in one of take quickly In a market update dated July 17, on-chain analytics platform CryptoQuant highlighted three key factors driving BTC price action in one place.

bitcoin speculator in the driving seat

Bitcoin has fended off any breakout attempts for several weeks in a row, hitting one-year all-time highs but always falling lower thereafter.

For CryptoQuant contributor Axel Adler, it has its roots in — among other things — speculative trading.

He says that short-term holders (STH) have sold their stakes since April, which has increased the selling pressure above $30,000.

“The group has been actively selling its bitcoin reserves, exerting significant pressure on the market,” he wrote.

“This indicates that short-term investors are actively liquidating their holdings, thereby locking in their profits.”

CryptoQuant defines STH as entities holding coins for six months or less.

Other recent data from on-chain analytics firm Glassnode leads analysts to conclude that the STH cost basis — most recently around $26,400 — is continuing to drive BTC price action in times of similarly more pronounced downside pressure.

miners sell bitcoin halving

Bitcoin miners are also on the radar this quarter as higher BTC prices fueled sales.

For Adler, selling BTC holdings to cover expenses ahead of the block subsidy halving in 2024 is another factor affecting price performance today.

He summarized, “Miners are actively selling their bitcoin reserves.”

“This is not an accident; We have seen peak sales in the last year. It is associated with the upcoming halving event when the reward for bitcoin mining will be halved. Miners need liquidity to invest in new equipment to stay competitive.”

As Cointelegraph reported, mining pool Poolin has recently contributed to massive exchange flows, sending large tranches of BTC to Binance. It has since become a subject of speculation in its own right. Rumors On the financial boom of the pool.

Absent Actual BTC Price Volatility

Bitcoin volatility remains the lowest in historical terms.

Related: BTC Traders Prepare for $30,000 Losses – 5 Things to Know in Bitcoin This Week

The cryptoquant revealed a net slowdown in trading activity since April, as profit-takers anticipate more major breakouts.

data from trading view The Bitcoin Historical Volatility Index (BVOL) shows it at 14.77 as of July 18 – well below its 2023 peak.

“All these factors combine to create the current picture of the bitcoin market, where the price appears to be ‘stuck’ in a narrow range,” concluded Adler.

“However, as always with cryptocurrencies, changes can happen very quickly, so investors and traders should closely monitor on-chain metrics to stay informed about market changes.”

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This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.