Bitcoin risks a deeper slide as miners and US spot ETFs cut BTC exposure, adding supply pressure during a fragile downtrend. The price of Bitcoin has dropped by more than 22.5% in the past week, hitting $69,000 on Thursday and wiping out 15 months of gains entirely. Veteran trader Peter Brandt warns that this downtrend may not be over. He highlights a phenomenon he refers to as 'campaign selling,' which is putting additional pressure on Bitcoin's price. Miners and ETFs are now reducing their exposure to BTC, creating a scenario where supply is increasing amidst a fragile demand environment.

Brandt points to a potential bottom zone between $54,600 and $55,000. His analysis suggests that Bitcoin could decline another 10% as institutional players like miners and ETFs continue to trim their BTC holdings. The market has seen a sequence of daily lower highs and lower lows, indicating a lack of buying interest from traders. This technical structure suggests that few market participants are willing to step in and buy the dip, at least for the time being.

Onchain data reinforces Brandt’s outlook. As of Thursday, metrics indicate a clear shift in miners' net position, showing more BTC being sent to the market. This trend reflects a broader pattern of distribution among major institutions rather than retail liquidation. The US spot Bitcoin ETFs have also been reducing their exposure, with net BTC balances decreasing to 1.27 million BTC as of Wednesday, down from 1.29 million at the start of the year.

The Coinbase premium, a key indicator of institutional interest, has fallen to yearly lows. This shift in market sentiment raises concerns about Bitcoin's ability to maintain its value. Brandt's technical setup suggests the bear flag target is around $63,800, representing a possible 10% decline from current levels.

Amid these developments, analysts are keeping a close eye on Bitcoin's pricing patterns. The potential for a deeper drop toward $54,600 is supported by ongoing institutional selling. GugaOnChain, another onchain analyst, has pointed out that the current price convergence toward this level signals a critical transition between capitulation and accumulation phases.

This analysis suggests that Bitcoin could be approaching a critical accumulation phase, similar to what was seen in 2022 when prices fell below $20,000 before rallying to over $30,000 a year later. Historical data indicates that price convergence in this range may signal the start of an accumulation phase, creating an opportunity for investors.

While these developments provide a lot of data for traders and investors, it is essential to remember that investing in cryptocurrencies carries risks. The market can be volatile, and conditions can change rapidly. Those looking to navigate these waters should conduct thorough research and consider their investment strategies carefully.

As Bitcoin's price action continues to unfold, the focus will remain on mining activities and institutional behaviors. The interplay between supply and demand will be critical in determining Bitcoin's price trajectory in the short term. Investors should remain vigilant and stay updated on market trends, as the situation can evolve quickly in the world of cryptocurrencies. This article does not provide investment advice but aims to inform readers about current market conditions and potential future scenarios.