Bitcoin mining status – No more selling? Know what it means and what it doesn't

  • Bitcoin miners' reserves have risen after several weeks of decline
  • BTC’s price chart remained red, while some indicators were bearish as well

Bitcoin [BTC] Miners have always played a key role in determining the price movement of BTC. Hence, it is pertinent to look at a particular trend seen recently on the mining front, which could fuel a rise in the price of the crypto in the coming days.

Bitcoin Miners Are Ready to HODL

Table of Contents

Crypto Dan, analyst and author at CryptoQuant, recently shared a Analysis Who outlined the same trend. After the fourth BTC halving, mining rewards declined. As a result, mining activity declined and miners began selling bitcoins in OTC transactions to cover mining operation costs. However, according to the analysis, this trend soon changed,

“The current market can be seen as being in the process of digesting this sell-off, and fortunately, the volume and number of bitcoins being sent by bitcoin miners from their wallets has decreased sharply recently.”

This means that the selling pressure from miners decreased, which could lead to a situation where BTC could regain bullish momentum.

2023 and 2024 saw an interesting, similar drop in selling pressure from miners. On both occasions, the drop in selling pressure was followed by a massive rally. Therefore, as the second quarter of this year comes to an end, BTC could begin its bullish rally in Q3.

bitcoin miner withdrawal transactions

Source: CryptoQuant

Will the miners start a rally?

Popular crypto-analyst Julio Moreno also shared a do Another interesting development was highlighted. According to this, BTC’s miner capitulation has reached levels comparable to December 2022 – a drop of 7.6%.

In 2022, this event signaled a market bottom. If history repeats itself, BTC could soon move higher.

Moreover, our analysis of Glassnode’s data showed that after the drop, BTC miners’ reserves started to increase, meaning miners are buying BTC. Finally, according to CryptoQuantNet deposits of BTC on exchanges appeared to be higher compared to the average of the past seven days – indicating an increase in buying pressure.

BTC miners' reserve

Source: Glassnode

However, at press time, BTC price charts continued to flash red. coinmarketcapBTC has fallen by more than 5% in the last seven days. At the time of writing, BTC was trading at $60,920.48 and had a market capitalization of over $1.19 trillion.

The Chaikin Money Flow (CMF) recorded a decline. The MACD also showed bearish gains in the market, indicating a continued downtrend.

Reading Bitcoin [BTC] Price Forecast 2024-25

Nevertheless, the Relative Strength Index (RSI) looked bullish as it moved higher. This could provide BTC with more momentum in the coming days.

BTCUSD 2024 06 29 12 58 05

Source: Tradingview

Leave a Comment

“The Untold Story: Yung Miami’s Response to Jimmy Butler’s Advances During an NBA Playoff Game” “Unveiling the Secrets: 15 Astonishing Facts About the PGA Championship”