- BTC miners have been sending fewer coins to exchanges in recent weeks
- According to a CryptoQuant analyst, they may be waiting for the coin’s price to rise to sell for a profit
Bitcoins [BTC] Miner-to-exchange activity has declined in recent weeks, despite the spike in the number of coins in the wallets of miners on the network. This was one of them findings from pseudonymous CryptoQuant analyst The Kriptolik.
According to the analyst, BTC miner reserves also rose to the highest level in two weeks. This represents the number of coins held in the wallets of affiliated miners. Its value indicates the reserves that miners have yet to sell. At the time of writing, these were worth $117 billion at current market prices.
BTC’s continued poor price performance has led to a trend of miners refraining from listing a significant portion of their coin holdings on exchanges. Kriptolik also noted:
“Despite miner reserves reaching all-time highs in the past two weeks, miners are not sending significant amounts of BTC to exchanges to sell, instead choosing to accumulate due to the drop in BTC price.”
When assessed on a 30-day moving average, BTC Miner to Exchange Flow has fallen 11% since early June. This metric tracks the amount of BTC that miners transfer from their mining wallets to cryptocurrency exchanges for further sale.
Source: CryptoQuant
This trend suggests that BTC miners may be waiting for a price increase, after which they will send their coin holdings to exchanges to make a profit. In fact, the analyst went on to say:
“This indicates that there could be selling pressure from miners during a future Bitcoin uptrend.”
BTC threatens to fall further
At the time of writing, BTC was valued at $64,403. Since June 7, the price of the king coin has been on a downward trend in the charts.
The key momentum indicators were below their respective midlines at the time of writing. BTC’s Relative Strength Index (RSI) was 37.81, while the Money Flow Index (MFI) was 34.89.
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At these values, these indicators showed that the distribution of BTC exceeded its accumulation among market participants.
BTC’s Elder-Ray Index confirmed the bearish trend against the leading asset, trading negative at the time of writing. In fact, its value has been negative since the downtrend began on June 7.
Source: TradingView
This indicator measures the relationship between the strength of buyers and sellers in the market. When the value is negative, bear power dominates the market.
Source: TradingView
If the downtrend on the charts becomes stronger, the price of BTC could fall to $63,382.
