On-chain shows that Bitcoin miners have been in a sellout phase recently, a sign that could prove bearish for the price of the crypto.
Bitcoin Miner Pool Sees Downtrend as Miners Seek to Get Rid
As one analyst pointed out in a post on CryptoQuant, the latest BTC miner selloffs could push the price down in the near term.
The “Miner Reserve” is an indicator that measures the total amount of Bitcoin currently stored in the wallets of all miners.
When the value of this indicator increases, it means that miners are depositing coins in their wallets at this time. Such a trend, when prolonged, can be a sign of accumulation from these network validators, and therefore could be bullish for the price of BTC.
On the other hand, the falling values of the metric suggest that miners are currently transferring a net number of coins from their reserves. Since miners usually withdraw their BTC for the purpose of selling, this type of trend can be bearish for the value of the crypto.
Now, here is a graph that shows the trend of the Bitcoin miner pool over the past few months:
Looks like the value of the metric has been going down in recent days | Source: CryptoQuant
As you can see in the chart above, Bitcoin miner reserves have trended lower over the past two weeks while the price has been rising.
This could suggest that miners may be participating in the distribution recently, taking advantage of the higher prices.
This sell-off by miners may dampen this latest rally and drive the value of the coin down, at least in the short term.
The reason for this dumping of this cohort is the recent decline in Bitcoin mining revenue. Many miners might need to sell more than usual to pay off their operating costs with these lower earnings.
Some other miners would also have leftover payments for their mining rigs, so they will have to sell more of their reserves to pay them back in the current environment.
BTC price
As of this writing, the price of Bitcoin is hovering around $24.5,000, up 6% in the past seven days. Over the past month, the crypto has gained 21% in value.
The chart below shows the price trend of the coin over the past five days.
The value of the crypto seems to have been moving sideways since the rise a few days ago | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, CryptoQuant.com
On-chain shows that Bitcoin miners have been in a sellout phase recently, a sign that could prove bearish for the price of the crypto.
Bitcoin Miner Pool Sees Downtrend as Miners Seek to Get Rid
As one analyst pointed out in a post on CryptoQuant, the latest BTC miner selloffs could push the price down in the near term.
The “Miner Reserve” is an indicator that measures the total amount of Bitcoin currently stored in the wallets of all miners.
When the value of this indicator increases, it means that miners are depositing coins in their wallets at this time. Such a trend, when prolonged, can be a sign of accumulation from these network validators, and therefore could be bullish for the price of BTC.
On the other hand, the falling values of the metric suggest that miners are currently transferring a net number of coins from their reserves. Since miners usually withdraw their BTC for the purpose of selling, this type of trend can be bearish for the value of the crypto.
Now, here is a graph that shows the trend of the Bitcoin miner pool over the past few months:
Looks like the value of the metric has been going down in recent days | Source: CryptoQuant
As you can see in the chart above, Bitcoin miner reserves have trended lower over the past two weeks while the price has been rising.
This could suggest that miners may be participating in the distribution recently, taking advantage of the higher prices.
This sell-off by miners may dampen this latest rally and drive the value of the coin down, at least in the short term.
The reason for this dumping of this cohort is the recent decline in Bitcoin mining revenue. Many miners might need to sell more than usual to pay off their operating costs with these lower earnings.
Some other miners would also have leftover payments for their mining rigs, so they will have to sell more of their reserves to pay them back in the current environment.
BTC price
As of this writing, the price of Bitcoin is hovering around $24.5,000, up 6% in the past seven days. Over the past month, the crypto has gained 21% in value.
The chart below shows the price trend of the coin over the past five days.
The value of the crypto seems to have been moving sideways since the rise a few days ago | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, CryptoQuant.com