What to Expect as Bitcoin Miners Continue Selling for Two Months Ahead of ETF Decision – No Cause for Alarm
Miners See Decline in Bitcoin Reserves as Price Struggles
Bitcoin miners are growing increasingly impatient as the cryptocurrency struggles to break the $44,000 mark. This impatience has resulted in a significant decrease in their reserves. However, despite the continuous selling pressure from miners, the price of Bitcoin may remain unaffected due to the bullish sentiment surrounding the upcoming ETF decision. This positive sentiment is reinforced by several applicants who are confidently launching their commercials.
Miner Reserves Hit Lowest Point in 7 Months
The reserves of Bitcoin held by miners have reached their lowest level since May, following a series of withdrawals this week. This trend indicates a growing selling pressure as the price of BTC failed to surpass the $44,000 threshold, despite recording a gain of nearly 12% in December.
Miner reserves refer to the number of coins stored in wallets associated with miners. This number decreases when coins are transferred to exchanges, which often serves as an indication of potential upcoming sales.
Data from CryptoQuant reveals that over the past two months, miners have been selling off their Bitcoin holdings after a price surge above $35,000. This upward movement, which came after a bearish phase following the market crash, has enticed miners to liquidate their assets.
Starting from late October, miners began balancing their accounts, leading to a gradual decline in reserves that intensified this month. Currently, miners hold approximately 1.832 million BTC, a decrease from the peak of 1.844 million in October.
As reported by Coinpedia, miners have liquidated nearly 3,000 BTC worth $129 million in the last 24 hours, causing reserves to plummet to the levels seen in May.
Despite the significant sell-offs by miners, the price of Bitcoin has remained relatively stable, consistently staying above the $40,000 mark. This stability is attributed to increased accumulation during price dips, driven by the anticipation of the SEC’s decision on spot ETF applications in January. Additionally, the surge in ETF advertising has bolstered confidence among holders, leading to further buying activity.
Bitcoin Eyes a Bullish January
As the year comes to a close, Bitcoin (BTC) maintains a strong position, with its value holding well above the $40,000 support level. This comes after a significant period of consolidation throughout much of 2023. Analysis from Coinglass highlights a trend of bullish Januarys for BTC, with positive growth observed in the past four years, except for a single deviation in 2022.
In January, Bitcoin experienced an impressive 39% rise, and data from Coinglass indicates an average January increase of 3.6%. Based on these trends, it is conceivable that BTC could establish the $45,000 level as a new support zone, potentially setting its sights on reaching $50,000.
The Puell Multiple, a key technical indicator for Bitcoin, has recently reached levels that have historically acted as significant resistance, particularly in 2012, 2016, and 2019. These levels have often triggered major reversals in Bitcoin’s price.
A high Puell Multiple, similar to the current one, suggests that Bitcoin is overbought, with miners selling a large volume at high prices, indicating a potential price correction. However, with the Puell Multiple dropping from its peak of 2.35 to a lower 1.49, it could signal upcoming opportunities for Bitcoin to rebound.
Tags: Bitcoin, Bitcoin ETF, Cryptocurrency