Bitcoin Price Prediction following Marathon Digital Trades off BTCs

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on March 03, 2023 09:34 AM

    Bitcoin came down after experiencing a green market again below $23K. The market FUD remains constant as many events are making the price fluctuate heavily.

    Bitcoin Price Prediction as Bitcoin Slips Nearly 5% as Marathon Digital Trades off BTCs
    Source: Unsplash

    Marathon Digital, one of the biggest publicly traded bitcoin miners, sold a significant portion of its bitcoin holdings in February which later hampered the Bitcoin price prediction of experts. Out of the 683 bitcoins that the company mined last month, it sold 650 of them to pay for its operating expenses and for general corporate purposes.

    This move is in line with the company's recent shift in strategy, which is similar to some of its peers like Riot Platforms. Marathon had previously held onto all of its mined bitcoin, but in January it sold 1,500 of them, marking the first time it had unloaded any of its holdings. This was an indication that the company could become a seller at some point, which it did in February.

    Despite the sales, Marathon's Chairman and CEO, Fred Thiel, revealed that the company increased its unrestricted bitcoin holdings from 8,090 bitcoins as of January 31, 2023, to 8,260 as of February 28. This amounts to a value of $191.2 million as of the end of February.

    As the move comes in, Bitcoin’s price is heavily affected due to the sell-off. On Wednesday, the BTC/USD price went above the $23,000 mark which made the market all green for investors. After a significant jump of over 10% on 15 Feb, the price held above the $20K mark is still very consistent. 

    Bitcoin Price Prediction

    The current Bitcoin price is $22,371.07 USD, and the 24-hour trading volume is $25,709,041,132 USD. Bitcoin has fallen by 4.92% in the previous 24 hours. With a market cap of $431,911,040,412 USD, Bitcoin is at #1 in CoinMarketCap rankings. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,306,675 BTC coins.


    Bitcoin price chart

    Source: CoinMarketCap

    Bitcoin Long-Term Price Prediction

    If we look at the previous price movement, it could be easily seen that from Nov 2022 to 9 Feb 2023, the price started to make a Cup and handle pattern which indicates a very ambiguous price movement but in the end, a breakthrough from the handle pattern could result in a Bull run.

    The 14-day RSI is at 47 and still dipping down as more and more market uncertainty rises. The same goes for the MACD chart. The green bars have gone already past the price hike and now the market is turning red due to various possible reasons.

    By looking at the trendline support, if everything goes well, Bitcoin will retrace its path from $22,361 and will go above the $23K mark again. If the price action breaks the support, it may be possible that an upcoming bear market could hit the prices soon.


    Bitcoin price chart from August 2022 to March 2023

    Source: TradingView

    Bitcoin Short-Term Price Prediction

    The pair has already broken out of a bearish Head and Shoulders pattern, according to the 4-hour chart. According to the technical analysis, the left shoulder peak has been created at $24,440.45, followed by the head of the pattern at 24,039.21, and lastly the right shoulder high at $23,504.81.

    BTC/USD is now trading below the neckline of this pattern at $22,000, and if it breaks through this level, it may target the S2 Fibonacci retracement support level near $21,700.

    The Moving Average Convergence Divergence (MACD) indicator has entered the negative zone after crossing below the signal line. The Relative Strength Index (RSI) is now at 31.71, indicating that BTC/USD is severely oversold.


    Bitcoin 4 hour price chart

    Source: TradingView

    Bitcoin On-chain Metrics Showing a Bull Divergence

    The 14-day Exponential Moving Average (EMA) of the number of active addresses interacting with the Bitcoin network was about 975,000 on Wednesday, according to statistics published by crypto analytics firm Glassnode, having trended higher steadily since closing last year well under 900,000. 

    If this statistic continues to grow and exceeds 982,000, active addresses will be at their highest level since last May. The number of active network addresses may be viewed as a rough indication of Bitcoin demand.


    Bitcoin chart for active addresses form may 2020 to march 2023

    Source: Glassnode

    The number of Bitcoin addresses holding a non-zero balance is on the rise, indicating an increase in the rate at which new addresses are being created. The total number of Bitcoin addresses holding a non-zero balance was last reported at 44.193 million on Thursday, which is close to the all-time high set last month above 44.2 million.

    This trend is a positive sign for the long-term adoption of Bitcoin, as rising non-zero balance address numbers indicate continued interest in the cryptocurrency. Although the correlation between the number of addresses holding a non-zero balance and the price of Bitcoin is not strong in the short term, historically, the number of such addresses has risen in both bull and bear markets.


    Bitcoin addresses with non zero balance from may 2020 to march 2023

    Source: Glassnode

    Bitcoin Price Prediction Hampered by Silver Gate Uncertainty

    Bitcoin (BTC) has dropped more than 5% in just over 60 minutes, from $23,500 to $22,240, after a wave of fear surrounding crypto-friendly bank Silvergate Capital. According to Markets Pro, the price decline has depleted $22 billion from Bitcoin's overall market value, which is currently $430.9 billion.

    Several Altcoins, like as Eth (ETH), XRP (XRP), Cardano (ADA), and Polygon (MATIC), have seen a similar steep decrease.


    The digital-asset market is dealing with the aftermath of the problems at crypto-friendly US bank Silvergate Capital Corp., which has said that it is examining its viability.

    Silvergate's problems are the latest example of the fallout from the November collapse of the FTX crypto market. Last year, the bank experienced a run on deposits as a result of the bankruptcy of FTX, a crucial client.

    The digital-asset sector is also facing a larger regulatory crackdown in the United States, as well as concerns that interest rates will remain higher for longer in order to combat inflation, sapping risk appetite.


    In conclusion, the recent uptick in the number of Bitcoin addresses holding a non-zero balance and the increase in the rate at which new addresses are being created is a positive sign for the long-term adoption and growth of Bitcoin. Although, keep in mind that Bitcoin and other cryptocurrencies are subjected to market risk and severe volatility. Any investment decision should be made after extensive research and market study. Bitcoin Price Prediction is not the ultimate result of the market. This article is the sole opinion of the author and shouldn’t be taken as a piece of investment advice.