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Bitcoin’s $120K Rally in Jeopardy as Miners Flood Binance with $2 Billion
The recent attempt by Bitcoin (BTC) to reclaim the coveted $120,000 mark is facing a new set of challenges after an unprecedented surge in miner deposits on Binance. According to data from CryptoQuant analyst Amr Taha, miners have sent over 18,000 BTC, valued at approximately $2 billion, to the exchange.
This sudden influx of Bitcoin into the market has sparked concerns about short-term liquidity pressure and potentially a period of consolidation or even correction. The sharp shift in miner behavior marks a dramatic departure from their previous cautious stance, where they were holding onto their reserves despite declining revenues and a slight 3.5% drop in hashrate.
In recent weeks, Bitcoin had experienced a surge towards $120,000, but the sudden influx of BTC has put pressure on the asset’s price. Analysts have attributed this “HODL” behavior to strong unrealized profits and expectations of further upside. However, it now seems that miners are taking profits amid rising operational costs and mining difficulty.
The Binance deposit also coincided with a massive $650 million withdrawal of USDC (US Dollar Coin) from the platform. This sudden drain in stablecoin liquidity may exacerbate short-term sell-side pressure, leading to potentially volatile market conditions.
It is worth noting that Bitcoin has been trading within a tight seven-day range of $115,184 to $119,568, which could be indicative of indecision near key resistance levels. Despite this, long-term fundamentals remain robust, with miner reserves climbing since March and addresses holding 100-1,000 BTC accumulating 65,000 BTC, their highest level since November 2024.
The market is now closely watching to see if Bitcoin can maintain support above $115,000. If it does, analysts expect another attempt at breaking the all-time high, potentially paving the way for a retest of this crucial resistance zone.
Source: cryptopotato.com
