CryptoQuant recently did a study that found a significant shift in the way Bitcoin miners act. This could be a turning point for the cryptocurrency. CryptoQuant analyst Crypto Dan has pointed out that miners aren’t selling as much, which has generally been a very important factor in how Bitcoin’s price moves.
Crypto Dan said, “Miners’ selling pressure decreases.” “One of the whales that have caused the cryptocurrency market to fall recently have been miners.” He said that older, less efficient mining rigs were used less after Bitcoin was “halved,” which meant that mining payouts were cut in half. Because there was less mining going on, miners had to sell Bitcoin in over-the-counter (OTC) deals to keep their businesses going.
The study shows that the market is currently taking this sell-off, with a noticeable drop in the amount and frequency of Bitcoin being moved out of miners’ wallets. “The current market can be seen as being in the process of digesting this sell-off, and fortunately, the quantity and number of Bitcoins miners are sending out of their wallets has been rapidly decreasing recently,” Dan said.
Bitcoin Miner Selling
What this change means is very important. Dan said, “In other words, the selling pressure of miners is weakening, and if all of their selling volume is absorbed, a situation may be created where the upward rally can continue again.” He was positive about the market and thought it would move in a good way in the third quarter of 2024.
This research is backed up by historical data from CryptoQuant. There have been times in the past when bitcoin prices were greatly affected by miners selling, especially from May to September 2023 and December 2023 to January 2024. During these times, Bitcoin prices moved sideways for a long time, which matched up with peak miner selling. Notably, when these selling actions stopped, Bitcoin prices started going up again.
This trend suggests that the recent drop in miner selling could be the start of another major bullish phase for Bitcoin, since the market seems to be in a good place for another turn of events.
More information from alpha dōjō’s technical experts gives a full picture of how the market is doing. Their daily report on Bitcoin through X shows how uncertain the market is right now, with Bitcoin “hopping around” without a clear direction. But the experts have found important price levels that could show how the market will move in the future: “If BTC reclaims the $63.5k area, it would be bullish; if it loses the $60k level, it would be bearish.”
The basic analysis also shows that there aren’t many large groups of orders in the BTC market right now, so liquidity is spread out. There are a lot of orders around the $63.5k level, which suggests that this price is important for market mood and possible bullish momentum.
Alpha dj’s order book data shows that there are a lot of sell orders right now, which means that traders are feeling bearish. On the other hand, the bid side is said to be weak because there aren’t many buy orders to support price increases. This imbalance suggests that the market is being cautious right now, possibly waiting for clearer signs before taking greater positions.
As the market continues to adjust to the fact that miners aren’t selling as much, traders and experts are keeping a close eye out for signs of a breakout. The next few weeks could be very important for figuring out if Bitcoin is ready for another significant rise.
