Journalist
Posted:
- Bitcoin’s Puell Multiple recently reached its highest value of 2023.
- Statistics showed that selling pressure on BTC increased.
Bitcoin [BTC] The position of miners has influenced the price of the currency in recent years. Their holdings and actions act as a key indicator to understand whether the price of the king of crypto is undervalued or overvalued.
Taking into account the latest data, the current position of the miners suggests that BTC may witness a price correction.
Bitcoin miners sell
An author and analyst at CryptoQuant recently posted analysis highlighting a key BTC indicator. The analyst was talking about Puell Multiple.
The measure is calculated by dividing the daily issuance value of bitcoins (in USD) by the 365-day moving average of the daily issuance value.
Historically, Puell Multiple has accurately captured the tops and bottoms of the Bitcoin price, cycle by cycle, since 2012. Recently, the measure spiked sharply, indicating that Bitcoin’s price may be overvalued.
Source: CryptoQuant
It was interesting to note that BTC‘s Puell Multiple rose, the blockchain hashrate also registered an increase. If reported previously by AMBCrypto, BTC hashrate reached its highest point in the past seven days.
At the time of writing, the hashrate of the king coin was 513.44 EH/s. Returning to miners’ activity, other data sets suggested that they have already started selling off their holdings.
AMBCrypto’s examination of Glassnode’s data found that miners’ balances have fallen dramatically in recent weeks, clearly indicating a sell-off.
From CryptoQuantBTC’s Miners’ Position Index (MPI) suggested that miners were selling their assets within a moderate range compared to the annual average.
Source: Glassnode
Is a price correction likely?
A possible reason behind the sale of miners BTC could be the positive price action of the coin. BTC rallied comfortably, keeping it above $37,000.
At the time of writing, BTC was trade at $37,382.61 with a market cap of over $730 billion.
BTC’s aSOPR metric suggested that investors were generally selling at a profit. In the middle of a bull market, this could indicate a market top.
Bitcoin net deposits on exchanges increased, further proving that selling pressure was high.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2023-24
AMBCrypto then checked BTC‘s derivatives statistics and found that although the price of the coin moved sideways, the financing rate remained stable.
Furthermore, open interest remained flat, suggesting that the slow-moving price trend could last longer.
Source: Coinglass