Bitcoin (BTC) fell towards $30,000 on Jan. 26 later higher levels evaporated and fresh miner outflows appeared to suppress price action.

BTC price rally turns sour

Data from Cointelegraph Markets and Tradingview showed the largest cryptocurrency abruptly U-plough as information technology neared $35,000 in early week trading.

At the time of writing, BTC/USD was lingering closer to $31,000, mark 24-hour losses in excess of five%.

A combination of factors, all of which suggest a short-term profit-taking mission amid market participants, entered the scene on Monday to proceed bulls from taking prices college.

BTC/USD one-60 minutes candle nautical chart (Bitstamp). Source: TradingView

Miners likely nonetheless selling

Data shows that miner outflows — funds leaving mining pools — continued to spike this week. Equally Cointelegraph reported, final week's toll swoop came as largest pool F2Pool saw several days of major outflows. This time, however, smaller miners were taking the pb.

Minor miner outflows chart. Source: CryptoQuant

Outflows may non specifically bespeak that miners are selling BTC, but show that mined coins are moving, possibly to venues where they will class role of a trade.

According to on-concatenation analytics resource CryptoQuant, total outflows were downwards this week versus last, but nonetheless heightened compared with recent months.

Total miner outflows chart. Source: CryptoQuant

Substitution flows positive for Bitcoin

Looking at exchanges, traders appeared to exist nervous regarding market strength. Unlike beliefs during Bitcoin'southward vertical price growth at the turn of the year, net flows to exchanges were positive in recent days.

Compiled past on-chain monitoring resource Glassnode, information tracking major exchanges showed that around $108 million more was deposited than withdrawn on Monday.

Conversely, supplies of largest altcoin Ether (ETH) on trading platforms fell by $47 million, while Tether (USDT) increased by $65 million.

Removal of coins from exchanges implies that holders have no intention to trade or sell them, instead placing them back in hot or cold storage wallets.

Coins are highly active

At that place are more active Bitcoin addresses than ever, while BTC holdings kept moving in recent days.

Bitcoin Days Destroyed, which measures the corporeality of each transaction on the Bitcoin network versus how long agone the coins involved concluding moved, hitting three-month lows this week.

Glassnode tracked a steep reject in the metric in January, coinciding with a trading frenzy on the back of Bitcoin striking new best highs of $42,000.

Bitcoin Days Destroyed seven-day moving average chart. Source: Glassnode/ Twitter

At the aforementioned time, wallet numbers themselves passed 1.24 million as of Jan. eight, the latest engagement for which information is available.

Resistance is in...

A glance at the spot market on Tuesday highlighted multiple resistance levels on BTC/USD, with sellers lined up at $1,000 increments beginning at $35,000.

USDT guild heatmap on Jan. 26. Source: Material Indicators/ Twitter

So far, bulls have failed to tackle whatever of these, with support besides in place at each $1,000 level until $27,000.

...And greed is out

Finally, after hovering at tape levels in Q4 2020, a classic mensurate of investor sentiment came back downwardly to October levels in recent days only to and so rebound to 71.

The Crypto Fear & Greed Index, which uses a basket of factors to determine whether investors themselves will crusade Bitcoin to smash or bust, swapped "extreme greed" to comparatively normal "greed."

Crypto Fear & Greed Index chart. Source: Digital Avails Data