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- Miners sold more than 110,000 BTC in a week; Will it slow price growth?
- There was little room for growth before the euphoria hit the BTC markets by cycle.
Bitcoin [BTC] Selling pressure from miners has increased as the price of BTC has surpassed $90,000. Between November 10 and 17, miners sold more than 110,000 BTC in a week, worth almost $10 billion.
The highest daily sell-off, 25,367 BTC (worth $2.2 billion), occurred on November 12, when the miners’ dump intensified.
Source: CryptoQuant
Mining sell-offs have increased since October, amid an overall broader market recovery.
This week, however, has intensified sales pressure has raised doubts about whether this could stop BTC from breaching its psychological target of $100,000.
In the past, increased miner sell-offs and turnover have marked local and cycle tops. If the current trend and reading were to lean towards the latter (cycle top), that could also push other holders to sell.
So, what is the current cycle status as BTC flirts with $90,000 and targets $100,000?
Decoding the cycle top of BTC
Source: BM Pro
From a miner’s perspective, a spike in miner fees (yellow) above 30% of total revenue is typically correlated with previous BTC cycle tops.
A high value means increased euphoria in the BTC markets, driving transaction costs to record highs relative to the rewards. That’s an overheated market signal.
In November, miner fees hovered around 10% of total revenue, meaning the market was still not overheated.
Another indicator, the Pi Cycle Top, showed little room for a rally for BTC before the market overheated.
In previous trends, BTC’s move above the moving average (350DMA x2, green line) marked the cycle top and a signal for holders to unload.
The green line indicated $120K, so BTC’s rise past the level can be considered a sell signal.
Source: BM Pro
Read Bitcoin [BTC] Price forecast 2024-2025
Interestingly, the $100,000-$120,000 targets were wildly anticipated by major players in the options market, as noted by QCP Capital, one of the world’s largest crypto options trading firms. The company recently noted:
“Given Bitcoin’s impressive rally since the US elections, we believe that $100,000 – $120,000 is not far off.”
If so, a strong move above $120,000 could trigger the Pi Cycle Top and, by extension, increase profit booking for all cohorts of BTC holders. That would imply a 30% move from the $90K level at the time of writing.
