- Statistics showed that selling sentiment around Bitcoin was dominant.
- Most market indicators also remained bearish.
Bitcoin [BTC] Miners have initiated a selling spree in recent days, raising concerns about the price of the coin.
AMBCrypto had before reported that miner outflows had reached a six-year high, leading to more than $1 billion worth of BTC being sent to exchanges. This trend lasted for a long time, as the latest data sets also pointed to a sell-off.
Bitcoin miners sell BTC
While the price of BTC remained below $43,000, miners sold BTC. To that extent, according to a CryptoQuant analysisas shown by the netflow metrics of BTC miners an influx of over 10,000 Bitcoins from miners’ wallets to exchanges recently.
This hinted that the possibility of miners selling BTC was high.
Source: CryptoQuant
The said analysis,
“This trend could indicate miners’ strategies to secure long-term operating funds. Selling Bitcoin on the market to offset mining and operational costs is a typical part of their business activities.”
Such large selloffs by miners have the potential to have several market impacts, including short-term changes in Bitcoin’s price. Therefore, to understand if a new price correction was coming, AMBCrypto checked BTC’s statistics.
Is a new price drop inevitable?
Our look at CryptoQuant’s facts revealed that BTC’s Miners Position Index (MPI) rose significantly. This further confirmed the fact that miners were selling BTC.
The general market sentiment around BTC also looked bearish, as did both BTC‘s Coinbase bounty and Korea bounty were in the red.
Things in the derivatives market also looked bearish as BTC’s buy/sell ratio was in the red, meaning selling sentiment among derivatives investors was high.
Source: CryptoQuant
AMBCrypto then moved to TradingView to check Bitcoin’s daily chart revealed that the king coin’s MACD showed a bearish crossover.
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The Relative Strength Index (RSI) also registered a decline and fell further below the neutral line, showing a higher probability of a price decline. However, the Chaikin Money Flow (CMF) headed north.
According to CoinMarketCapAt the time of writing, BTC was trading at $42,803.52 with a market cap of over $838 billion.
Source: TradingView
