In a analysis Provided by CryptoQuant, a significant change in the behavior of Bitcoin miners has been noticed, possibly signaling a turning point. CryptoQuant analyst known as Crypto Dan outlined a reduction in selling pressure from miners, which has historically been a crucial factor influencing Bitcoin’s price trajectory.
Bitcoin Mining selling pressure is easing
According to Crypto Dan, selling pressure from miners is easing. One of the whales that has caused the cryptocurrency market to decline lately are miners.” He explained that the BTC halving, which halved mining rewards, led to a decline in the use of older, less efficient mining rigs, causing overall mining activity to decline. This change forced miners to sell Bitcoin through over-the-counter (OTC) transactions to support their operations.
The analysis suggests that the market is currently absorbing the sell-off, with a notable drop in the volume and frequency of Bitcoin being transferred from miners’ wallets. “You can see that the current market is trying to digest this sell-off, and fortunately the quantity and number of Bitcoins that miners are sending out of their wallets has rapidly decreased recently,” said Crypto Dan.
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The consequences of this shift are significant. Crypto Dan added: “In other words, the selling pressure from miners is weakening, and if all their selling volume is absorbed, a situation could arise where the upward rally can continue again.” He predicted optimism for the market and predicted positive movements in the third quarter of 2024.
Historical data from CryptoQuant confirms the analysis. BTC has previously shown a similar pattern where miners’ selling activity exerted a strong influence on market prices, especially noted from May to September 2023 and from December 2023 to January 2024. During these periods, a prolonged sideways movement in BTC prices was observed , in line with spikes in miner sales. Notably, as this selling activity subsided, Bitcoin prices resumed an upward trend.
This pattern suggests that the recent decline in miner sales could be the harbinger of another significant bullish phase for Bitcoin, as market conditions appear ripe for a similar reversal.
Key price level for a bullish breakout
Further insights from technical analysts at alpha dōjō provide a detailed picture of market conditions. Their daily update on Bitcoin via However, the analysts have identified critical price levels that could indicate future market moves: “If BTC reclaims the $63.5k area, it would be bullish; if it loses the $60,000 level, it would be bearish.”
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The technical analysis also shows that liquidity in the Bitcoin market is currently scattered, with few substantial clusters of orders. The most notable concentration of orders is around the $63.5k level, suggesting that this price is crucial to market sentiment and potential bullish momentum.
The order book data provided by alpha dōjō highlights a current dominance of sell orders, indicating bearish sentiment among traders. Conversely, the bid side is described as weak, with fewer buy orders supporting upward price movements. This imbalance suggests that the market is currently cautious and may be waiting for more definitive signals before taking more substantial positions.
At the time of writing, BTC was trading at $61,704.
Featured image created with DALL·E, chart from TradingView.com
