On-Chain Data Shows Bitcoin Miners Hold Off On Selling Despite BTC Rallying Above $57k
October 11 2021 - 2:00PM
NEWSBTC
According to on-chain data, Bitcoin miners seem to be holding off
on selling BTC despite the recent rally where the coin has crossed
$57k. Bitcoin Miner Reserves Continue To Move Sideways As pointed
out by a CryptoQuant post, BTC miner reserves continue to trend
sideways amid the coin’s strong move up. The “miner reserve” is a
indicator that shows the total amount of Bitcoin that miners are
currently holding in their wallets. An increase in the metric’s
value suggests miners think the coin’s value will go up in the near
future, hence they are stocking up on it. While a decrease would
mean they are taking their profits as they expect a correction or
bear market in the future. Related Reading | Why A Parabolic
Move Is Expected For Bitcoin, Billionaire Mike Novogratz Here is a
chart showing the trend in the value of this indicator versus the
BTC price over the last year: The BTC miner reserve seems to be
treading sideways | Source: CryptoQuant As the above graph shows,
the indicator’s value has been moving rather sideways recently,
despite the sharp move up in Bitcoin’s price. Generally, such a
move implies miners are either neutral or bullish about the crypto.
Many of them are still taking out some coins, while others are
adding back in similar amounts. This is why the reserve is looking
very balanced at the moment. Related Reading | Why The $1
Trillion Coin Is Another Reason To Stay Long Bitcoin On a closer
look at the chart, it becomes apparent that the metric also showed
a bit of sideways movement during the rally that took BTC to the
current all time high (ATH). Perhaps something similar will happen
here so it can be worth keeping an eye on these miner reserves for
any movements in either direction. BTC Price At the time of
writing, Bitcoin’s price floats around $57.5k, up 22% in the last
seven days. Over the last month, the crypto has accumulated 26% in
gains. The below chart shows the trend in the price of the coin
over the last five days: BTC's price shows strong movement up |
Source: BTCUSD on TradingView Bitcoin has shown a lot of volatility
recently, but the price has still been showing an overall upwards
trend as the coin now crosses $57k for the first time since May of
this year. It remains to be seen if the crypto can keep up this
momentum and make a new ATH soon. Signs seem to be leaning positive
as a supply shock now seems to be brewing in the market as shown by
the exchange reserves of the coin that have fallen down to lows not
seen since October 2017. Featured image from Unsplash.com, chart
from TradingView.com
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