- Bitcoin Miner Reserve falls to year-to-date low.
- This indicates an increase in the mining coin sell-off.
Bitcoin [BTC] Miner Reserve has fallen to its lowest level since the start of the year, data shows CryptoQuant has shown.
This metric measures the number of coins held in the wallets of affiliated miners. His value indicates the reserve that miners have yet to sell. At the time of writing, 1.81 million BTC, worth $125 billion at current market prices, were held in miners’ wallets.
Source: CryptoQuant
When BTC Miner Reserve drops, it suggests that miners on the Bitcoin network are distributing their coins for profit or to settle mining fees.
Data from CryptoQuant showed that after a long period of decline, BTC Miner Reserve initiated an uptrend on April 8, as the market awaited the fourth Bitcoin halving, scheduled for April 19.
After the halving, the value briefly rose to a peak of 1.82 million BTC on April 23, after which the downward trend began again. Since then, the number of BTC miners owning has fallen by 1%.
Interestingly, there has been a decline in miner-to-exchange activity over the past three months.
According to CryptoQuant data, the flow of BTC from miners’ wallets to the rated exchanges (on a 30-day moving average basis) has fallen 48% since the year-to-date (YTD) high of 11,853 BTC at 27 March.
Source: CryptoQuant
However, this does not mean that miners have not sold their coins. They may have been selling their BTCs through Over-the-Counter (OTC) markets instead of directly to exchanges.
They may also engage in peer-to-peer selling, where they sell directly to buyers without using exchanges.
Bitcoin bulls and bears are beating it out
According to CoinMarketCap data, BTC exchanged hands at $68,988 at the time of writing. The leading crypto asset is still facing significant resistance at the $70,000 price level.
Assessed on a three-day chart, the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 57.72 and 40.95 respectively.
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Source: BTC/USDT on TradingView
A combined reading of the values of these key momentum indicators suggested that while the market witnessed a rise in buying momentum, there was also notable selling activity in the market.
For the price of BTC to rise above $70,000, buying pressure must increase and outpace profit-taking activity.