bitcoin was forced to retest the $27,000 level last day as miners engaged in a huge sell-off.
bitcoin miners sold 20,000 btc last week
According to data from the market intelligence platform In the block, btc miners have made some major sales over the last week. The relevant indicator here is the “mining reserve”, which tracks the total amount of bitcoin that miners as a whole carry in their wallets.
When the value of this metric increases, it means that these chain validators are currently making deposits to your addresses. This trend suggests that miners are accumulating at the moment, which can naturally be bullish for the asset’s price.
On the other hand, reductions in the indicator imply that miners are taking a net amount of coins out of their wallets. Generally, the main reason this cohort makes transfers like these is to sell, so this type of trend can have bearish consequences for the cryptocurrency.
Now, here is a chart showing the trend in the bitcoin mining pool over the past few months:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Retests-27000-as-Miners-Sell-More-Since-April.jpeg" alt="bitcoin Mining Reserve” width=”1306″ height=”573″/>
Looks like the value of the metric has been sharply going down in recent days | Source: IntoTheBlock on X
As shown in the chart above, the bitcoin mining pool has seen a drop over the past week, implying that these chain validators have been withdrawing coins from their wallets.
In total, this group has transferred 20,000 btc ($544.6 million at the current exchange rate) from their wallets during this drop. This liquidation is the largest in which miners have participated since April.
Miners selling their coins isn’t exactly unusual, as this cohort has running costs, like electricity bills, that they have to fund somehow, and for many miners, selling the coins they’re mining is the easiest way. .
However, the scale of these periodic liquidations is usually not that large and the market is able to absorb them without problems. In the current case, however, miners have sold an especially large amount, which can certainly be a worrying sign for the asset.
bitcoin has seen some decline over the past few days, which may have been induced, at least in part, by this sell-off by miners. Over the past 24 hours, the asset has sunk deeper and retested the $27,000 mark.
As for why miners may have decided to sell now, the fact that asset prices have been better on average this month so far than in September could have played a role.
The miners selling here could be those who do not believe that the cryptocurrency will see a significant rally in the near future, so they have decided to abandon this slightly profitable opportunity.
btc Price
bitcoin had retested the $27,000 level earlier in the day, but the asset has since seen a slight jump as it now floats around the $27,200 mark.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Retests-27000-as-Miners-Sell-More-Since-April" alt="bitcoin price chart” width=”1534″ height=”869″/>
btc has been going down over the past few days | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, Charts from TradingView.com, IntoTheBlock.com
