The crypto community witnessed some intense Bitcoin selling pressure last few weeks, which eventually led to its price correction. The price, which saw a short-term peak, quickly declined when traders sold off before the price fell. The sell-off eventually worsened Bitcoin’s situation, as it saw several days of the rapid rise and falls.
Presently, Bitcoin stabilized to a point where new investors are rushing to explore the recent dip. Experts predict a fresh rise in the digital asset’s selling pressure with the Chinese people having their New Year celebration soon. On the flip side, during this year’s beginning, Bitcoin did not face correction; in fact, it surged and hit new prices during the first few weeks.
Chinese New Year’s influence on Bitcoin
Looking at the data, it is clear that the holiday has had a significant influence on crypto in the past. Charts show that during the few days before the Lunar New Year, BTC prices decline, showing a sign that there is might be selling pressure. Lennard Neo, an analyst, spoke on the holiday’s past influence on Bitcoin and the altcoins.
The Head of Research for Stack Funds predicted that the new year might influence a new selling pressure, but he assures it’s for a short period. The head also opined that the current market structure would help interested investors to invest in the asset. Many investors interested in BTC are waiting for a significant dip, which Neo opines that they would get when the holiday emerges.
Bitcoin’s performance in the past week has had more declines than rises, with BTC correcting at over 10% and gradually inching towards the $28,000 mark. Fortunately, since its fall, it quickly recovered by retaking its $31,000 position.
Investors fear that any more selling pressure could cause a price crash, which might take BTC far from its peak. The analyst added that the currency’s price would continue to fluctuate, thereby leading to more price corrections, which might wipe a significant value from Bitcoin.
Miners to sell more as holiday emerges
The biggest reason the digital asset might face increased pressure would be the miners’ selling activities. Crypto enthusiasts often link a price dip to the miners’ selling pressure, because in the past, miners often sold large amounts of Bitcoin, thereby leading to price drops.
Neo predicts an increased selling pressure from Chinese miners, which would cause a significant price correction. He pointed out that China had the world’s largest mining pool, meaning that the region’s activity could change things for the crypto. The popular holiday is widely known around the region, with natives selling some of their assets to spend enough for the celebration.
Apart from miners, Asian traders could also sell their digital asset holdings, especially since they appreciated in last year’s surge. The report also noted that the past statistics show that the crypto space might decline for a short-term because of the region. China recently spoke on the scarcity of chips in the area, meaning that it might reduce crypto mining activities.
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