On-chain data shows Bitcoin miners may be preparing to dump
On-chain data shows that Bitcoin miners withdrew a large number of coins from their wallets yesterday, suggesting that they might be planning to sell them.
Bitcoin miners moved 14,000 BTC out of reserve yesterday
As noted by an analyst in a CryptoQuant post, the BTC miner pool saw a drop over the past day.
The “Min Reserve” is an indicator that measures the total amount of Bitcoin currently stored in the wallets of all miners.
When the value of the metric increases, it means that a net amount of coins is currently entering miners’ wallets.
Such a trend, when prolonged, may suggest that these chain validators are piling up at the moment and thus may be bullish for the price of the crypto.
On the other hand, a drop in reserve value indicates that miners are currently withdrawing a net amount of BTC.
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Since they often transfer their coins to sell on the exchange, this type of trend can be bearish for the value of BTC.
Now, here is a chart showing the trend of the Bitcoin miner pool over the past two years:
It seems that the value of the indicator has dropped considerably recently | Source: CryptoQuant
As you can see from the chart above, the Bitcoin miner pool has seen a significant decline over the past day.
The chart also includes data from two other indicators: the BTC Miner Position Index and BTC Miner Exits.
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The output is just the total amount of coins that come out of the miners’ wallets. As the drop in booking predicted, this metric also dropped considerably in value.
What the “Miner Position Index” (MPI) does is compare this current output value to the 365-day moving average.
This tells us how current mining sales compare to those seen in last year’s period.
This indicator recorded a big spike yesterday. The last two times spikes this big were seen, Bitcoin started falling a bit later (or immediately if it spiked in April).
Following the past trend, this could probably prove bearish for the value of the crypto.
At the time of writing, the price of Bitcoin hovers around $20.7,000, down 4% in the last seven days. Over the last month, the cryptocurrency has lost 8% in value.
The price of the coin seems to have stagnated in the last two days after a rise | Source: BTCUSD on TradingView Featured Image by Dmitry Demidko on Unsplash.com, TradingView.com Charts, CryptoQuant.com
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