- Bitcoin miners’ reserves have risen after weeks of decline
- The BTC price chart remained red, while a number of indicators were also bearish
Bitcoin [BTC] Miners have always played a crucial role in determining the direction BTC takes in terms of price action. Therefore, it is worth taking a look at a specific trend recently observed on the mining front, a trend that could potentially cause a rise in the price of cryptocurrencies in the coming days.
Bitcoin miners are willing to use HODL
Crypto Dan, an analyst and author at CryptoQuant, recently shared one analysis which underlined this trend. After the fourth BTC halving, mining rewards dropped. As a result, mining activity declined and miners began selling Bitcoin through OTC transactions to cover the costs of mining. However, according to the analysis, this trend soon changed:
“You can see that the current market is trying to digest this sell-off, and fortunately the quantity and number of bitcoins miners are sending out of their wallets have rapidly decreased recently.”
This meant that selling pressure from miners subsided, which could create a situation where BTC could regain bullish momentum.
An interesting, similar drop in miners’ selling pressure was observed in 2023 and 2024. On both occasions, a drop in selling pressure was followed by massive bull rallies. Therefore, as the second quarter of this year comes to an end, BTC could start its bull rally in the third quarter.
Source: CryptoQuant
Will miners organize a rally?
Julio Moreno, a popular crypto analyst, also shared one tweet point to another interesting development. According to the same, the capitulation of BTC miners has reached a level comparable to that of December 2022 – a withdrawal of 7.6%.
In 2022, this incident signaled a market bottom. If history repeats itself, BTC could turn bullish soon.
Furthermore, our analysis of Glassnode’s data showed that after a decline, BTC miners’ reserves started to rise, meaning miners bought BTC. Finally, according to CryptoQuantThe net deposit of BTC on the exchanges appeared high, compared to the average of the past seven days – indicating an increase in buying pressure.
Source: Glassnode
However, at the time of writing, BTC price charts continued to flash red. According to CoinMarketCapBTC has fallen by more than 5% in the past seven days. At the time of writing, BTC was trading at $60,920.48 with a market cap of over $1.19 trillion.
The Chaikin Money Flow (CMF) registered a decline. The MACD also showed a bearish edge in the market, indicating a continued downtrend.
Read Bitcoins [BTC] Price prediction 2024-25
Nevertheless, the Relative Strength Index (RSI) looked bullish as it rose. This could allow BTC to gain more momentum in the coming days.
Source: TradingView