One of the best ways to be successful as Bitcoin investors is to see potential trends before they happen. In Bitcoin’s case, keeping a close eye on miner reserves is an advantage when it comes to anticipating selling pressure. At this point, BTC miner reserves are giving important signals, according to the latest on-chain data.
Signals scaring Bitcoin miner reserves
BTC price started to fluctuate a little faster after seeing rejection at $25,000. Meanwhile, on-chain analysts point out that BTC miner reserves are sending important signals. Controlling the direction of altcoin markets, Bitcoin maintained a positive sideways trend throughout the weekend. On the other hand, we saw big sales on the first day of the week, which is expected to add volume to the markets. After climbing to $25,135, BTC price suddenly deepened to $24,000. The sudden move caused a sharp break in BTC’s hourly chart.
Bitcoin and Ethereum are currently testing the $24,000 and $1,900 levels respectively. The sudden drop also shocked investors who hoped the rally would continue until September. Experts at on-chain analytics firm CryptoQuant also say that sales will continue for a while. The selling pressure could become more intense, according to the analysis of the “Bitcoin miner reserves” data from CryptoQuant by the analyst nicknamed Greatest Trader.
Veteran analyst points to this level on Bitcoin chart
Greatest Trader says fluctuations in miner reserves are comparable to when BTC hits bottom. The CryptoQuant chart reveals a decline in reserves similar to what was seen in June. Meanwhile, the current decline is not as severe as in the past. According to the analyst, the constant sales of Bitcoin miners are a result of their declining profitability. The analyst also pointed out that miners sold between $18,000 and $22,000 during BTC’s consolidation. According to Greatest Trader:
While Bitcoin dropped to $16,000 in June, miners sold the most BTC. There were serious concerns about the decline in profitability. However, the Miner Reserve was gradually growing during the most recent market consolidation period between the $18,000 and $22,000 levels. To offset losses and reduce their exposure to price volatility, many miners had to sell their Bitcoins.
On the other hand, the multiple dynamics involved in Bitcoin mining, such as the cost of mining equipment and electricity costs, can change at any time. Unexpected or unfavorable increases in mining costs reduce profitability. This forces miners to sell more of their reserved BTC to cover operating costs. At the same time, it triggers more selling pressure based on the amount of Bitcoin drained from the miner’s reserves. According to on-chain data, miner revenue peaked at 1,019.80 BTC on August 6. cryptocoin.comIt then fell as low as 880.31 BTC before the unannounced rally on August 13.
Finally, the analyst points out the possibility of another Bitcoin collapse. The famous expert says that the selling pressure of the miners can bring BTC down to $ 20,000:
However, over the past few weeks, Bitcoin’s price has recovered significantly and is already approaching the $25,000 mark. The Miner Reserve chart shows that miners have dispersed their holdings since the last surge. All in all, if this scenario continues, sellers selling pressure will cause the price to drop to around $20,000 in the near future.
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