The on-chain data indicates that Bitcoin miners have been dumpling over the past few weeks, however the price of crypto has held steady so far.
Bitcoin Miner Reserve Has Lost 10k BTC In Last Two Weeks As Miners Sell
CryptoQuant analyst points out that although miners may have sold in the last few days, BTC’s value has not moved.
The “miner reserve” is an indicator that measures the total amount of Bitcoin currently present in the wallets of all miners.
This metric is declining in value, which means that coins are being taken out of miner wallets. As miners usually transfer out their BTC for selling on exchanges, such a trend can be bearish for the crypto’s price.
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However, miners may be accumulating as their pockets are fuller if the value of the reserve is rising. If this trend continues, it can be a bullish sign for BTC.
Below is a chart showing how the Bitcoin miners reserve has changed over the past year.
Source: CryptoQuant| Source: CryptoQuant
You can see that Bitcoin mining reserves reached their local maximum on June 17th. The metric’s value has been steadily declining over the past few weeks.
It means that many coins were withdrawn from miner wallets in this time period. It appears that the total amount of withdrawals was approximately 10k BTC.
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Although the decline is evident, it has been accompanied by sideways movements. This might indicate that the current market is able to buy enough of the selling by miners.
This post’s quant believes that price stability through dumping, and negative recent news about multiple lending platforms in bankruptcy could be an indicator that bottom is in.
BTC price
At the time of writing, Bitcoin’s price floats around $20.4k, up 7% in the last seven days. The crypto’s value has fallen 37% over the last month.
Below is a chart showing the change in coin price over the past five days.
According to TradingView, the value of crypto appears to have seen an upward trend in the last few days.| Source: BTCUSD on TradingView
Bitcoin seems to finally have gained more than $20k after bouncing around for some time at the $19k level.
Mariia Shahabaieva's featured image on Unsplash.com. Charts by TradingView.com. CryptoQuant.com.