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- According to data, there has been intense pressure from Bitcoin
miners in recent days.
- Bitcoin is trading above $27,300.
It has been determined that Bitcoin miners have been selling recently; what does this mean for the price of Bitcoin (BTC)?
Bitcoin Miners Selling Their Reserves Lately!
According to data, there has been intense pressure from miners in recent days. The relevant indicator here is the “miner reserve,” which measures the total amount of Bitcoin currently held in all miners’ wallets.
When this metric increases, it means that miners are currently depositing a net amount of money into their addresses. Such a trend could be a sign that these chain validators are currently accumulating and therefore could lead to upward results for the asset’s value.
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On the other hand, a decrease in the indicator’s value indicates that these investors are currently transferring some BTC from their wallets. Since miners typically withdraw their coins only when they want to sell them, such a trend could indicate a downward trend in the cryptocurrency’s price.
In the current context of the discussion, the primary criterion of interest is the 14-day change rate of the Bitcoin miner reserve. This criterion tells us the speed at which the indicator fluctuates and the direction (negative or positive) of these fluctuations.
Here is a graph showing the trend in the 14-day ROC BTC miner reserves over the last few months:
Bitcoin Miner Reserves
As shown in the above graph, the 14-day ROC of the Bitcoin miner reserve had a negative value in the last few days. This means that these chain validators’ assets have decreased during this period.
However, not long ago, the indicator had some positive values, indicating that these chain validators were buying. However, things changed when the asset’s price began to fall below the $30,000 level.
When the price reached around $28,000, the indicator turned red, indicating that miners may have participated in market-wide sales.
After the miners’ selling frenzy, the asset’s value continued to decline and fell to $26,000. However, since then, the decline has stopped, and it is likely that these levels may have offered a local bottom for the asset.
The selling pressure from miners has also begun to slow down recently, as the latest negative rise in the metric is on a smaller scale than previous ones, as seen in the graph.
Bitcoin Price Jumps Above $27,000
Yesterday, the Bitcoin price also jumped back above the $27,000 level, indicating that the market can now absorb the current levels of selling pressure from this group.
Such a trend was also seen during the March sell-off, where the price formed a bottom and then rose again as the selling pressure from miners subsided.
It is not yet known whether miners will reduce their sales in the next few days (as they did in March) or continue to sell, possibly causing further declines in the asset.