Key Points
- Bitcoin miners have been sending fewer coins to exchanges in recent weeks, possibly waiting for a price rally.
- Despite poor price performance, miners are holding onto their Bitcoin, with reserves reaching a two-week high.
Bitcoin’s [BTC] miner-to-exchange activity has seen a decrease in recent weeks. This comes despite an increase in coins held in miners’ wallets on the network. This information comes from a CryptoQuant analyst known as The Kriptolik.
Bitcoin Miner Reserves Rise
The Kriptolik has noted that BTC miner reserves have reached a two-week high. This figure represents the amount of coins held in miners’ wallets. Its value indicates the amount of reserves that miners have yet to sell. At the time of writing, these reserves were valued at $117 billion.
Despite the poor price performance of BTC, miners have refrained from offloading a significant amount of their coin holdings onto exchanges. Kriptolik stated, “Despite miner reserves reaching the highest level in the last two weeks, miners are not sending significant amounts of BTC to exchanges to sell, instead opting to accumulate due to the decline in BTC price.”
Waiting for a Price Surge
This trend suggests that BTC miners may be waiting for a price surge, after which they will send their coin holdings to exchanges for profit. The analyst went on to say, “This indicates that there could be selling pressure from miners during a future Bitcoin uptrend.”
At press time, BTC was valued at $64,403. Its price has been on a downtrend since 7 June. Its key momentum indicators were positioned below their respective center lines at press time. BTC’s Relative Strength Index (RSI) was 37.81, while its Money Flow Index (MFI) was 34.89.
These values indicate that BTC distribution outweighed accumulation among market participants. Confirming the bearish bias towards the leading asset, BTC’s Elder-Ray Index returned a negative value at press time. Its value has been negative since the downtrend began on 7 June.
This indicator measures the relationship between the strength of buyers and sellers in the market. When its value is negative, bear power dominates the market. If the downtrend intensifies on the charts, BTC’s price might plunge to $63,382.
