The on-chain data indicates that Bitcoin miners are quietly building up while the market falls.
Bitcoin Miner Reserve Maintains High Values, Despite the Struggling Prices
An analyst explained in CryptoQuant that BTC miners have continued to build despite the decline in price over the last few weeks.
The “BTC miner reserve” is an indicator that tells us the total amount of Bitcoin present in the wallets of all miners.
If this indicator’s value goes up it is an indication that miners are adding coins to their reserves. A prolonged trend like this could be an indication that miners are currently accumulating.
A downtrend in the metrics suggests that miners might be selling as they move some Bitcoin from their wallets. This can have a negative impact on the cryptocurrency’s value.
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Below is a chart that illustrates the change in BTC miner reserve during the past year.
The indicator seems to have experienced an upward trend recently. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the miner reserves have been increasing since Bitcoin’s all-time high at $69k, and then the price started to fall.
Miners added less than 12k BTC during this time, and the price of crypto fell by about 35%.
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Miners are historically one of the main sources of selling pressure on the market. These traditional sellers can show accumulation behavior lately, which is quite bullish for Bitcoin’s price.
According to the quant, this accumulation trend and the absence of mass dumpings in recent months may indicate that crypto is reaching its lowest point.
Although this may be beneficial for the market in the long-term it is unlikely to have any positive impact on the short term due to Russia’s invasion of Ukraine, which continues.
BTC price
At the time of writing, Bitcoin’s price floats around $38.3k, down 1% in the last seven days. The crypto’s value has fallen 8% over the last month.
Below is a chart showing the change in BTC’s price over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Just a few days back, Bitcoin had again climbed above $45k, but it didn’t last long. It fell quickly, and now it is at the sub-39k level.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts