- Bitcoin miners are sending record amounts of BTC to exchanges. As the influx to exchanges increases, the likelihood of a price correction for BTC rises.
- Looking at the daily chart for BTC, it can be seen that bulls are ahead of bears. The most clear indicator of this is the Exponential Moving Average (EMA) band.
- Data from CryptoQuant shows that miners are still selling BTC at a moderate level, indicated by the BTC Miners’ Position Index (MPI).
According to recent on-chain data, Bitcoin miners are sending high amounts of BTC to exchanges: is the possibility of a decline increasing?
Bitcoin Miners Sending BTC to Exchanges
Bitcoin miners are sending record amounts of BTC to exchanges. As the influx to exchanges increases, the likelihood of a price correction for BTC rises.
According to Glassnode’s analysis, BTC miners have increased selling pressure. Miners sent a record-breaking $128 million worth of BTC to exchanges, which accounts for 315% of their daily revenue.
Historically, such situations have been followed by price corrections for Bitcoin. Therefore, is BTC expecting another price drop in the coming days?
As miners continue to sell their assets, the distribution of BTC supply has shifted towards the bear market. According to Santiment’s chart, the supply of BTC on exchanges is approaching the supply outside of exchanges. If the supply on exchanges surpasses the supply outside, it means that selling pressure is dominant in the market and may cause a decrease in BTC’s price in the coming days.
Bulls Still Ahead
Looking at the daily chart for BTC, it can be seen that bulls are ahead of bears. The most clear indicator of this is the Exponential Moving Average (EMA) band, as the 20-day EMA is above the 55-day EMA. BTC’s MACD also gives a bullish signal in line with the EMA bands.
However, Bitcoin’s Money Flow Index (MFI) is in the overbought zone, which can create panic among investors and encourage them to sell their assets. Additionally, the Relative Strength Index (RSI) is in a declining state and moving southward. This indicates that the possibility of BTC’s price still falling cannot be ignored.
Are Miners to Blame?
Data from CryptoQuant shows that miners are still selling BTC at a moderate level, indicated by the BTC Miners’ Position Index (MPI). BTC’s Puell Multiple also indicates that miners’ income is at a moderate level compared to the one-year average.
However, it’s not just miners who are to blame, but investors in general are also selling BTC to make a profit, as indicated by the red aSORP.
In addition, net investments made to exchanges in the past seven days have been high, which proves that the coin is under significant selling pressure.
