{"id":419278,"date":"2020-03-27T10:00:37","date_gmt":"2020-03-27T10:00:37","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=419278"},"modified":"2024-06-11T13:46:50","modified_gmt":"2024-06-11T13:46:50","slug":"factor-that-foresaw-bitcoins-mid-march-crash-to-3800-is-flipping-bullish","status":"publish","type":"post","link":"https:\/\/www.newsbtc.com\/news\/factor-that-foresaw-bitcoins-mid-march-crash-to-3800-is-flipping-bullish\/","title":{"rendered":"Factor That Foresaw Bitcoin’s Mid-March Crash to $3,800 Is Flipping Bullish"},"content":{"rendered":"

Earlier this month, the price of Bitcoin<\/a> fell off a cliff. On March 12th, the day that has since been dubbed “Black Thursday,” the cryptocurrency fell from $7,700 to a price under $4,000 in a near-record level move.<\/p>\n

This move caught most investors with their pants down. Case in point: some $1 billion worth of BitMEX positions were liquidated in a 24-hour period on that day alone. The thing is, there were red flags. One such red flag was that shared by Charlie Morris,<\/a> founder of cryptocurrency analytics site ByteTree. Per his company’s data, he found<\/a> that wallets mining Bitcoin had started to “sell less [coins] than they mine” around March 4th, just a week before the collapse.<\/p>\n

Miners hoarding has “historically coincided with negative returns and reflects a weaker market bid” because “they want to protect the market which is too soft to sell into.”<\/p>\n

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#bitcoin<\/a> miners have recently started to sell less than they mine. Historically, that has coincided with negative returns and reflects a weaker market bid. Miners are hoarding because they want to protect the market which is too soft to sell into. Bottom row turned green. pic.twitter.com\/JPy0RqwEwQ<\/a><\/p>\n

— Charlie Morris (@AtlasPulse) March 4, 2020<\/a><\/p><\/blockquote>\n