As the crypto market eagerly awaits the upcoming FOMC meeting, Bitcoin has come under significant selling pressure. On-chain indicators reveal that Bitcoin (BTC) miners have been aggressively selling off their holdings, which could potentially extend the current price drop.

Bitcoin Miner Capitulation

CryptoQuant Head of Research Julio Moreno has reported a notable increase in Bitcoin miner capitulation. On Monday, miners sold 1,200 Bitcoin, marking the largest daily miner selling volume since late March. These transactions were conducted over-the-counter (OTC), indicating that miners are opting for large, discreet trades to minimize immediate market impact. This month, Bitcoin OTC desk balances for miners have surged by 54,000 BTC, reaching a year-high.

Potential Price Drop to $62,500

Bitcoin analyst Willy Woo suggests that recent liquidations may trigger further downward momentum for Bitcoin prices. If the next wave of long liquidations continues to fuel this trend, Bitcoin could drop to $62,500 to clear out the remaining speculative positions. Woo emphasizes the necessity of purging the "degen" open interest in futures bets, stating that these liquidations must occur before any significant upward movement can resume.

Range Rejection

According to The Scalping Pro, Bitcoin has faced yet another rejection from its range high. The cryptocurrency has been oscillating between $60,500 and $71,500 since March, marking the fourth rejection from the upper limit of this range. The analyst highlights that the next critical support level lies near the mid-range at $65,000, which is essential for Bitcoin to maintain to avoid further declines.

Conclusion

The surge in Bitcoin miner capitulation, as evidenced by the significant increase in OTC desk balances, suggests that miners may be preparing to sell more Bitcoin due to concerns over potential price drops or immediate cash needs. This sell-off, combined with recent liquidations, could potentially extend the current price drop to $62,500, as speculative positions are cleared out. Bitcoin's inability to break through its range high and maintain the $65,000 support level could lead to further declines in the near term.