Bitcoin Price Today: $87,600
- Bitcoin trades lower on Wednesday, extending losses after hitting a new all-time high of $89,940 on Tuesday.
- Technical indicators suggest the rally is overstretched, signaling a potential corrective pullback.
- BTC’s Miner Position Index hits a yearly high, indicating profit-taking by miners and increased selling pressure.
Bitcoin (BTC) price continues its downward trend, trading around $87,600 after a 30% surge since November 5. The rally appears exhausted, with technical indicators hinting at an imminent correction. The Miner Position Index (MPI) spiked to 3.56, a yearly high, historically preceding price dips.
Miners’ Sell-Off Intensifies Bitcoin’s Decline
Bitcoin’s rally to $89,940 triggered profit-taking, particularly by miners. The MPI measures BTC outflow from miners’ wallets relative to the annual average. A spike suggests heightened selling activity.
- On November 10, 2023, a similar MPI spike (3.87) led to a 6% drop in BTC’s price within four days.
- Current MPI levels (3.56) may foreshadow another decline.
Despite miner sell-offs, institutional demand via spot Bitcoin ETFs (e.g., BlackRock’s IBIT) has cushioned dips. On Tuesday, these ETFs saw $801.70 million in inflows**, driven by IBIT’s **$762.50 million contribution.
👉 Why institutional investors are flocking to Bitcoin ETFs
Bitcoin Price Prediction: Exhaustion Signals Correction
Bitcoin’s 7-day rally to $89,940 shows signs of fatigue:
- RSI at 80 (daily chart), deep in overbought territory, now trending downward.
- Key support at $78,807 (141.4% Fibonacci extension).
- Resistance at $99,887 (241.4% Fibonacci extension) if bulls regain momentum.
BTC/USDT Daily Chart Analysis
- Overbought RSI suggests caution for long positions.
- A break below $78,807 could accelerate declines.
FAQ Section
Why is Bitcoin’s price declining?
Profit-taking by miners and overbought technical indicators are driving the dip. The MPI spike signals increased selling pressure.
Will Bitcoin ETFs offset the selling pressure?
Yes. Institutional inflows into ETFs (e.g., BlackRock’s IBIT) provide liquidity, potentially stabilizing prices.
What’s the next key support level for BTC?
$78,807 (141.4% Fibonacci level) is critical. A breach could trigger further downside.
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Is Bitcoin still a “digital gold” alternative?
Yes. Analysts note a 30% BTC surge vs. gold’s 5% drop post-election, signaling shifting investor preferences.
What’s the long-term outlook for Bitcoin?
If 1% of gold’s capital flows into BTC, prices could reach $97k, per QCP Capital’s report.
Key Takeaways
- Short-term caution: Overbought conditions and miner sell-offs hint at a correction.
- Institutional buffer: ETF inflows may mitigate sharp declines.
- Critical levels: Watch $78,807** (support) and **$99,887 (resistance).
Disclaimer: Cryptocurrency investments carry risks. This content is for informational purposes only and not financial advice.
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