Analyzing how Bitcoin miners can influence BTC price
- Market indicators revealed that the bulls were still ahead of the bears.
- But selling pressure on BTC was increasing, which could cause trouble.
Bitcoin [BTC] miners are sending record amounts of BTC to exchanges. As exchange inflow increases, the chances of BTC witnessing a price correction get higher.
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Glassnode’s latest tweet revealed that BTC miners increased selling pressure on the coin. As per the tweet, BTC miners sent an all-time high of $128 million to exchanges, equivalent to 315% of their daily revenue.
Historically, such episodes were followed by a price correction in the king of cryptos’ value. Therefore, is BTC awaiting another price dip in the coming days?
As miners continued to sell their holdings, BTC’s supply distribution turned bearish. As per Santiment’s chart, BTC’s supply on exchanges was closing in on its supply outside of exchanges. If the former flips the latter, it would mean that selling sentiment is dominant in the market, which can cause BTC’s price to decline over the days to follow.
The bulls are still leading
A look at BTC’s daily chart revealed that the bulls were ahead of the bears. This was evident from its Exponential Moving Average (EMA) ribbon, as the 20-day EMA was well above the 55-day EMA. BTC’s MACD also complemented the EMA ribbons, as it was bullish.
However, Bitcoin’s Money Flow Index (MFI) was in an overbought position, which can create panic among investors and motivate them to sell their holdings. On top of that, the Relative Strength Index (RSI) registered a downtick and was headed southward. This suggested that the possibility of BTC’s price plummeting can’t be ruled out yet.
Are the miners to blame?
CryptoQuant’s data revealed that miners were still selling moderate amounts of BTC, which was evident from BTC’s Miners’ Position Index (MPI). BTC’s Puell Multiple pointed out that miner’s revenue was in a moderate range, compared to its one-year average.
However, the miners are not the only ones to blame, and investors in general were also selling BTC at a profit, as suggested by the red aSORP.
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Moreover, net deposits on exchanges were also high compared to the last seven days, further proving that the coin was under immense selling pressure.
In the last 24 hours, BTC’s price declined marginally. At press time, it was trading at $30,338.28 with a market capitalization of over $589 billion.