Bitcoin, the largest cryptocurrency, dropped below the $38,000 at 17:23 UTC on the Bitstamp exchange after trading at as high as $41,450 earlier today.
The cryptocurrency is currently down almost five percent over the past 24 hours.
Miners are in a selling mood
As noted by CryptoQuant CEO Ki Young Ju, the Miners' Position Index (MPI) recently reached its highest level since July 2019, the month Bitcoin topped out at roughly $13,700 before seeing a huge correction.
Very high MPI readings suggest that miners are actively taking profits instead of accumulating, thus exerting pressure on the market.
Bitcoin is extremely overbought
Earlier today, NorthmanTrader's lead market strategist Sven Henrich noticed that the relative strength index (RSI) had reached 93, it highest level ever, on the weekly Bitcoin chart. This suggests that the volatile commodity is extremely overbought.
However, earlier this week, veteran trader Peter Brandt claimed that assets typically remain overbought during raging bull markets, which is exactly what happened during Bitcoin's last bullish cycles.