Inside the final hr Bitcoin (BTC) toll dropped to $eight,840. The drop came with less than 8 hours left earlier the weekly close.

A confluence of miners selling more BTC than they mine, Bitcoin recording 6 consecutive lower highs, and the retest of the $8,800 support leaves BTC vulnerable to a severe pullback.

Six consecutive lower highs since June 2022

As shown on the daily chart, since June 19 Bitcoin has recorded six consecutive lower highs. The price rejected at $xiv,000, $thirteen,300, $12,300, $x,600, $10,500, and $10,000, making every local top lower than the previous peak.

In technical analysis, lower highs point that buyers are failing to establish a new bull cycle. Every time a lower meridian is reached, it shows the selling pressure in the market is only too strong to interruption out of it.

Bitcoin records 6 consecutive lower highs since June 2022. Source: Tradingview

A clear rejection of the $nine,800 to $9,900 range and the projected tertiary test of the $eight,800 support level suggest Bitcoin is not ready to initiate a rally above $ten,000 merely yet.

Triple test of $8,800

The cost of Bitcoin rebounded at $viii,840, testing the $8,800 back up area for the 2d time within four days. Typically, the digital asset tends to suspension down beneath a heavy level of support in the third or 4th touch. This ways, BTC is likely to see a make clean breach of $viii,800 upon the weekly close.

Nigh immediately later on dropping close to $8,800, the price of Bitcoin rebounded to around $8,900, showing BTC is set for a short-term price spike following the weekly open up on May 25.

Simply, information from TradingLite shared by cryptocurrency trader Hsaka shows a significant amount of sell orders on OKEx in the $9,300 to $9,400 range.

OKEx shows big sell orders at $9,300. Source: Hsaka

Based on the firm response of buyers at the $eight,800 support level and selling force per unit area at $9,300, BTC is likely to remain in between the $eight,800 to $nine,300 range before seeing the next pullback.

If the toll of Bitcoin rebounds in the curt-term to the depression-$9,000 region and revisits $8,800, the probability of BTC seeing a much larger correction to the $6,000 to $7,000 range increases.

Bitcoin miners are applying selling force per unit area

Bitcoin miners are continuing to sell more BTC than they mine. Such a trend is understandable given that the breakeven toll of mining BTC is in a higher place $12,000 following the May 11 halving.

The price of Bitcoin is nowhere shut to $12,000 and this means miners volition accept to sell a portion of their existing supply to cover operational costs.

As cryptocurrency investor Willy Woo explained, there are 2 unmatched sellers in the Bitcoin market: miners and exchanges. Woo said:

At that place's only two unmatched sell pressures on the market. (one) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market.

Bitcoin Miners Rolling Inventory Above 103%. Source: ByteTree

As shown by the chart above, the Miner'due south Rolling Inventory (MRI) is above 103%, which means miners are spending more BTC than usual. This means the selling pressure coming from miners volition continue to remain a threat to the recovery of BTC in the curt-term.

Keep track of top crypto markets in existent time here