- Bitcoin rose more than 7% as the price rose above $46,000.
- On-chain statistics revealed high selling pressure on BTC.
Bitcoin [BTC] eventually rose above a crucial level, raising hopes of a renewed bull rally. But just before that happened, the BTC mining industry showed distrust in the king coin when a major sell-off occurred.
Will this event hurt BTC and end the bull rally?
Bitcoin jumps above $46,000
According to CoinMarketCapIn the last 24 hours alone, the price of BTC rose by more than 7%, allowing it to rise above $46,000. At the time of writing, it was trading at $46,738.61 with a market cap of over $915 billion.
However, the Bitcoin mining industry acted differently. AMBCrypto’s look at IntoTheBlock’s data revealed that a large mining pool sold a significant amount of BTC. Notably, F2Pool sold over 1,000 BTC on January 5, 2024.
Moreover, the total net flow of Bitcoin miners registered a decline last week.
Source: IntoTheBlock
To investigate further, AMBCrypto checked Glassnode’s data. Our analysis found that most miners were selling their holdings, as evidenced by Bitcoin’s declining miner balance over the past 30 days.
A possible reason for this could be the decline in revenue from miners. From CryptoQuantBTC’s Miners Position Index (MPI) suggested they were selling shares in a moderate range compared to the annual average.
Source: Glassnode
AMBCrypto also noticed an outflow of miners from the Bitcoin mining industry. from Coinwarz facts revealed that BTC’s hash rate had fallen sharply over the past week. At the time of writing, the King Coin hash rate was 483.89 EH/s.
Will This Sell-Off Affect Bitcoin Growth?
While Bitcoin’s price action has been bullish, a look at the on-chain metrics showed bearish indications. Remarkable, BTC‘s foreign exchange reserves had increased at the time of going to press.
Net deposits on the exchanges were high compared to the average of the past seven days, meaning selling pressure on the coin was high during this period.
Source: CryptoQuant
Additionally, BTC‘s aSORP was in the red at the time of the report, meaning more investors were selling at a profit. In the middle of a bull market, this could indicate a market top.
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Things did not look optimistic in the derivatives market either, as King Coin’s Taker Buy Sell Ratio was in the red. This indicated that selling sentiment was dominant in the derivatives market.
Nevertheless, Bitcoin Open Interest remained bullish as it showed indications that it would rise along with the price. When the Open Interest rises, it means a greater chance of the trend continuing.
Source: Coinglass
