On-chain data show that Bitcoin miners withdrew large amounts of coins from their wallets yesterday, suggesting that they may be planning to sell them.
Bitcoin miner transferred 14kBTC from reserve yesterday
As CryptoQuant analysts pointed out PositionBTC Minor Reserve has observed a plunge in the past day.
“Miner reserveIs an indicator that measures the total amount of Bitcoin currently stored in the wallets of all miners.
A higher metric value means that the net number of coins is in the minor wallet at that point.
Prolonged such trends may indicate that these chain validators are currently accumulating and therefore may be bullish on crypto prices.
On the other hand, lower reserves indicate that miners are currently withdrawing the net amount of BTC.
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This kind of trend can be bearish on the value of BTC, as they usually transfer coins for sale on exchanges.
Now, here is a chart showing trends in Bitcoin minor reserves over the last few years:
Looks like the value of the indicator has sharply declined recently | Source: CryptoQuant
As you can see in the graph above, Bitcoin Minor Reserve has observed a significant decline over the past day.
The chart also contains data for two other indicators: the BTC Minor Position Index and the BTC Minor Outflow.
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Outflow is the total amount of coins that leave the miner’s wallet. As expected from the plunge in reserves, the value of this metric is also dropping sharply.
what”Miner position index(MPI) is to compare this current outflow value with the same 365-day moving average.
This tells us how current miner sales are compared to what was observed during the last year.
This indicator recorded a big surge yesterday. When such a big spike was seen twice last time, Bitcoin started to fall after a while (or soon in the case of the April spike).
If past trends go by, this can turn out to be bearish on the value of cryptography.
At the time of writing Bitcoin price It has decreased by 4% in the last 7 days and fluctuates at about $ 20.7k. In the past month, the value of cryptography has been lost by 8%.
The price of the coin seems to have stagnated during the past couple of days after a move up | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, CryptoQuant.com