Bitcoin Miner Reserve Hits Yearly Low Amid High Selling Pressure
The Essentials in Brief
The Bitcoin miner reserve has dropped to an annual low of 1.81 million BTC. This decline suggests an increase in sales by miners. While selling activity is noticeable in the market, there are also buying activities, but these are not sufficient to overcome the selling pressure. The dynamics between bulls and bears in the market remain tense, with a critical resistance at the $70,000 mark for Bitcoin.
Insight into the Miner Reserve
The Bitcoin miner reserve measures the amount of Bitcoins held by miners that have not yet been sold. A decrease in this reserve typically indicates that miners are beginning to liquidate their holdings, whether for profit or to cover operating costs. Current data from CryptoQuant shows that the reserve has dropped to 1.81 million BTC, representing the lowest level since the beginning of the year.
Miners’ Selling Activities
Despite a short-term increase in the miner reserve in April, ahead of the fourth Bitcoin halving, the downward trend continued after the event. Interestingly, the analysis shows that the direct transfer of BTC from miner wallets to exchanges has decreased by 48% in the last three months. However, this does not mean that no sales are taking place. Miners could instead use the Over-the-Counter (OTC) market or conduct peer-to-peer sales to liquidate their holdings.
Market Dynamics between Bulls and Bears
Currently, Bitcoin faces a significant resistance mark at $70,000. Despite an increase in buying activities, the selling pressure remains high, posing a challenge for a sustainable price rally. The key indicators, the Relative Strength Index (RSI) and the Money Flow Index (MFI), suggest a mixed market sentiment, with both buying and selling activities.
Our Assessment
The current situation in the Bitcoin market is a classic example of the tug-of-war between bulls and bears. The decline in the Bitcoin miner reserve is an important indicator of market sentiment and should be closely monitored by investors. While the miners’ selling activity is putting pressure on the market, there are also positive signals in the form of buying interest. However, an increase in buying activities is required for a sustainable price rally beyond the $70,000 mark. Investors should closely follow developments and adjust their strategies accordingly.
Sources: CryptoQuant, CoinMarketCap, TradingView
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $99,237.00 |
| 24h % | -5.87 % |
| 7d % | -1.33 % |
| 30d % | 9.36 % |
| 60d % | 45.63 % |
| 1y % | 129.04 % |
| Market Cap | $1,963,247,160,286.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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