After spending nearly a month within the $30,000 range, Bitcoin (BTC) has been meditating before what analysts foresee as an imminent price action.

One reason on why Bitcoin is moving in a narrow range can be attributed to the decisions of short-term traders, which have capitalized on the recent price bump in the world’s most popular cryptocurrency.

CryptoQuant contributor Adler noted that increased selling pressure above the $30,000 mark “indicates that short-term investors are actively liquidating their assets, thereby locking in their profits.”

Another reason for the horizontal price movement could be due to BTC miners selling Bitcoin reserves ahead of the upcoming halving event. According to Adler:

“This is not a random occurrence; we have seen peak sales over the last year. This is connected to the upcoming halving event when the reward for mining Bitcoin decreases by half. Miners require liquidity to invest in new equipment to stay competitive.”

The question on the minds of Bitcoin traders and speculators is this: Will BTC’s next sharp move be on the side of the bulls or bears?

It’s in fact difficult to answer this question. Axel Adler believes that the recent Bitcoin price behavior may be followed by a quick change:

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

Sources:

https://cointelegraph.com/news/bitcoin-price-stuck-30k-3-reasons-why

https://coinmarketcap.com/currencies/bitcoin/