As we all know, the currency market is very volatile, and the price of the currencies don’t remain the same. Their prices change all the time and can affect the trading strategies of traders and their patience.
Due to BTC’s inability to exit the constrained range of $16,850 to $17,250, the Sunday Bitcoin price prediction is still considered neutral. The long-term viability of holding any sizeable amount of the original cryptocurrency appears to have been abandoned by Bitcoin miners, who now appear to be selling off massive amounts of the cryptocurrency.
According to CryptoQuant, 10,000 BTC was lost by Bitcoin miners on December 1. This number is considerably less than the 2,569 units miners introduced to the market and sold on November 26.
The high cost of Bitcoin mining and the sharp decrease in the value of the crypto asset were cited as factors by Joaowedson, a CryptoQuant analyst, who offered his opinion. Added Joaowedson:
The “makers” and the asset of the biggest cryptocurrency by market cap are bound to fail as things stand. Bitcoin miners may no longer benefit financially from their work due to the recent decline in the value of Bitcoin and the significant expense involved in producing a single Bitcoin.
If they continue to dump the products of their labour into the market, the price of the coin might decline, and its volatility could rise. Previous market selloffs have also impacted earnings in the mining business.
According to Glassnode, at the time this article was written, miners had earned 814.28 BTC. Given this, it’s easy to understand how one may conclude that Bitcoin doesn’t offer its miners any incentives or transaction fees.
The US Dollar Hit a Month-Long Low
The drop in the US dollar value, which reached a three-month low, was another critical factor boosting BTC prices.
Investors profited from surprisingly positive job data, which was seen as one of the main factors in containing dollar declines.
The falls, meanwhile, was just temporary as they reached a three-month low amid a dovish posture.
Putin Requests Settlement of Digital Currency
Vladimir Putin, the president of Russia, has pushed for a new, intermediary-free system of international settlements. The Russian president stated that distributed ledgers and digital currency technology might be used to build such a system.
Currently, the price of one bitcoin is $17,010, and $15 billion worth of it is traded daily. In the past 24 hours, the BTC/USD pair has increased by more than 0.10%. Additionally, its value has climbed by about 2.75% in the last week.
The BTC/USD pair is now trading sideways in a limited trading range of $16,800 to $17,250. It has failed to break over $17,250.
The 23.6% Fibonacci retracement of Bitcoin’s price has been completed at $16,900, and closing candles below $16,950 may lead to further selling until the $16,750 resistance level is reached.