Historical data show that some miners started selling bitcoin (BTC) in late July, leading to increased pressure on sales in the cryptocurrency market.
Eventually, the dominant cryptocurrency fell sharply in mid-August, recording a 13% decline, and BTC has been struggling to regain its $ 12K mark ever since.
Sale of bitcoins by miners from 201
According to CryptoQuant CEO Ki Young Ju, continued mining sales may not be enough to prevent the scourge. Chain data analysis companies closely monitor the movement of miners and whales, as they have significant amounts of BTC.
Willie Wu, a chain analyst, explained that miners are one of two external sources of pressure to sell bitcoin. Earlier, he said:
“There are only two incomparable pressures on sales in the market. (1) Miners who dilute the supply and sell on the market, this is the hidden tax through monetary inflation. And (2) exchanges that tax traders and sell on the market. “
When miners start selling their bitcoin holdings, usually to cover costs, this could trigger a correction in the cryptocurrency market.
For example, from August 17 to September 5, the price of bitcoin fell from 12,486 to 9,813 dollars. During this time, several whales sold bitcoin for exactly $ 12,000, and the same behavior is observed among miners.
The pressure on sales from miners and whales has long been due to the current downturn in the crypto market, but in the long run Ki has explained that this is not enough to stop a long run.
If miners suddenly sell a significant amount of BTC, this can lead to a serious adjustment, as small price movements can cause liquidations by traders with large leverage. Therefore, even a relatively small sale by miners can theoretically lead to huge changes in prices.
Ki says the intensity of the miners’ sales has not been strong enough to stop future bulls. He said:
“Digger update: Some miners started selling at the end of July, but I don’t think the miners have sold BTC big enough in the long run to stop the next bull.”
According to ByteTree, the net stock of bitcoin miners has decreased by 125 BTC per week in the last 12 weeks. The data show that miners sold approximately $ 1.362 million BTC per week on top of the BTC they mined and sold.
Quantity of BTC obtained and sold in the last 12 weeks. Source: ByteTree
As Ki pointed out, the data show that the miners sold significant amounts of BTC, but not in quantities that are irregular to normal behavior.
The cycle after bulls after half remains possible
Bitcoin is still moving above the critical level of $ 10,000 for technical support, despite numerous attempts by bears to bring the price below the key level.
The resilience of bitcoins against the background of increased levels of sales pressure suggests a cautious upward trend in the long run.
The short-term owner of bitcoin NUPL. Source: Glassnode
Several indicators of the chain also show that it is now a healthy phase of bitcoin accumulation. Rafael Schulze-Kraft, technical director at Glassnode, said:
“Short-term net unrealized gains / losses (STH-NUPL) with #bullish signal here imo. This 0-line rebound was important, very typical of previous bullish markets and a historically good buying opportunity. “