Why BTC Miners Are Selling Their Coins
In recent weeks, Bitcoin miners have been actively reducing their holdings of Bitcoin as the price continues to hover below the critical $100,000 mark. At press time, the main coin was trading at $98,535, down 1% from its all-time high of $99,860 set during Friday’s trading session.
As the Bitcoin market begins to move sideways, miners may be forced to further allocate their Bitcoin holdings to generate profits or offset growing mining costs.
Bitcoin miners sell their assets
According to data from CryptoQuant, Bitcoin miner reserves has fallen to its lowest level since the beginning of the year. As of this writing, the number of Bitcoins is 1.81 million.
This metric tracks the number of coins held in miners’ wallets. It represents the reserve of tokens that miners have yet to sell. The decline in Bitcoin miner reserves indicates that miners on the Bitcoin network are distributing their coins, either to make a profit or to cover the costs associated with mining.
Furthermore, readings of BTC miner net flow confirm the daily trend of miners selling coins on the network. As of the time of writing, the indicator has a negative value of -1,172 BTC.
Mining machine net flow refers to The net amount of Bitcoin bought or sold by miners. It is calculated by subtracting the number of Bitcoins miners sell from the number of Bitcoins they buy. When it is negative, it indicates that miners are selling more coins than they are buying. This is usually a bearish signal and a precursor to a short-term downward trend in the coin’s price.
Bitcoin Price Prediction: Bulls Still in Control
Although Bitcoin miners have increased selling pressure on the coin over the past few weeks, the bullish bias against the coin king remains strong. This is reflected in the position of the points that make up its Parabolic Stop and Reversal (SAR) indicator. As of this writing, these points are still below the price of BTC.
The Parabolic SAR identifies an asset’s trend direction and potential reversal points. When its points are below the price of an asset, it indicates a bullish trend. Traders interpret this as a signal to go long and exit short positions.
If this trend continues, BTC price will recover It has an all-time high of $99,860 and may breach the psychological $100,000 mark. On the other hand, a surge in profit-taking activity would invalidate this bullish outlook. If buying pressure subsides, The price of BTC may drop to $88,986.
Disclaimer
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