- The net flow of Bitcoin miners fell to the lowest level since the year started on January 17.
- This meant a significant drop in BTC’s miner reserve.
Bitcoin [BTC] Miner Netflow plummeted to its lowest level of the year on January 17, indicating a significant decline in miner reserves, data from CryptoQuant showed.
According to the on-chain data provider, more than 10,000 BTC worth approximately $436 million at the coin’s press time price were sent to exchanges for further sale on that day.
Source: CryptoQuant
When BTC’s Miner Netflow decreases in this way, it results in a corresponding decrease in Miner Reserves, which measures the number of coins held in the wallets of member miners within the time period examined.
On January 17, BTC’s miner reserve fell 1%, to its lowest level since the beginning of the year. According to CryptoQuant data, there were 1.82 million BTC in the wallets of all existing miners on that day.
Source: CryptoQuant
In a recent one reportCryptoQuant analyst Woo Minkyu commented on the impact of the decline in BTC’s Miner Netflow and reserves.
“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. In summary, such significant sell-offs by miners could impact the market in several ways, potentially leading to short-term price fluctuations for Bitcoin.”
Bitcoin in the past week
At the time of writing, BTC exchanged hands at $42,695, registering an 8% price drop over the past week, according to data from CoinMarketCap.
AMBCrypto’s assessment of the coin’s price movements on a daily chart revealed that the price drop over the past week was a direct response to the bearish trend, which has dominated the market since January 12.
According to measurements of BTC’s moving average convergence/divergence (MACD), BTC’s MACD line crossed below the trend line that day and has been showing only red histogram bars since then.
The downward intersection of an asset’s MACD line with its trend line suggests that the market’s upward momentum is waning. It also suggests that a bearish trend could develop.
Those accumulating the assets would see it as a warning sign as it suggests a bearish shift in market dynamics.
Confirming the bearish shift in sentiment, BTC’s positive directional index (green) at 16.90 at the time of writing was lower than the negative directional index (red), which yielded a value of 21.26.
Read Bitcoin’s [BTC] Price forecast 2023-24
Similarly, on January 12, the red line crossed the green line, lending further credence to the above position.
When a coin experiences this type of crossing, it means that the strength of the bears has surpassed that of the bulls, and a price drop is expected.
Source: TradingView