Bitcoin Miners Might Be Preparing For A Dump, On-Chain Data Shows

Bitcoin miners might be preparing for a dump as the on-chain data shows and they withdrew a huge amount of coins from their wallets already so let’s read more today in our Bitcoin news.

As pointed out by the analysts at CryptoQuant, the BTC miner reserve observed a huge drop during the past day. The miner reserve is an indicator that measures the amount of BTC stored in the wallet of the miners so when the value of the metric increases, it means that a net number of coins will enter into the miner wallets. This trend can suggest that chain validators are accumulating and can be bullish for the entire crypto price. On the other hand, the lowering value of the reserves indicates that the miners are withdrawing net amounts of BTC and since they usually transfer out the coins for selling on exchanges, this kind of trend can be bearish for BTC.

As the charts show, the BTC miner reserve observed a huge decrease in the past day. The chart included the data for two other indicators like the BTC miner’s position index and the BTC miner outflow. The outflow is the total amount of coins that exits the miner wallets and as expected from the drop in the reserve, the metric also decreased in value. What the miner’s index shows is that it compares the outflow value to the 365-day moving average of the same.

This only tells us about the current miner selling that can be comapred with the observed in the period of last year. The indicator registered a huge spike and the last two times these spikes were seen, BTC started going down. If the past trends are showing anything, it could turn out to be bearish for the value of the asset. The Bitcoin miners might be preparing for a dump and the price will float around $20.7K as it did in the past week.

As recently reported, The past week was not so good for the main cryptocurrency as the asset was rejected at $22,000 and lost value gradually. The situation got worse in the middle of the week when the US announced new CPI numbers showing Bitcoin reacted with strong volatility and dropped below $19,000.