The Bitcoin (BTC) Miner reserves have experienced a consistent decline over the last year in a rather concerning development. However, Bitcoin has recorded multiple price rallies during this period even breaking into the $100,000 price zone. CryptoQuant analyst cryptoavails has provided some insight into this divergent trend pinpointing the driving force behind the current bullish market.
Bitcoin Miners Offload 37 Million BTC Amid Selling Spree
In a Quicktake post on X, cryptoavails shares that Bitcoin miners’ holdings have been decreasing since the second half of 2023, falling from 1.808 million BTC to its current value of 1.808 million BTC.
Generally, when miners’ reserves surge, it indicates accumulation which is interpreted as a bullish signal. On the other hand, a fall in miners’ holdings due to high operational costs or profit-taking represents significant selling pressure which can produce bearish sentiments.
However, amid the ongoing offload by Bitcoin miners, cryptoavails highlights the premier cryptocurrency has recorded notable periodic price growth rising to a current value of around $103,000. The crypto analyst explains that this unusual behavior indicates that other market participants i.e. retail and institutional investors have exhibited a robust demand to mop up all selling pressure from the miners.
For example, the Bitcoin Spot ETFs, introduced in January 2024 have proven monumental in BTC price growth each surge in inflows conceding with a price rally. According to data from SoSoValue, the Bitcoin Spot ETFs currently boast total net assets of $114.82 billion despite being in the market for barely over a year, representing an immense institutional demand for the premier cryptocurrency.
Interestingly, cryptoavails notes that a continuous decline in miners’ reserves would eventually result in reduced selling pressure, likely due to less BTC available to sell, thereby contributing to a higher potential for price gains in the future.
BTC To Enter Consolidation?
In other news, popular market analyst Rekt Capital has postulated a price movement necessary for Bitcoin to maintain its current rally and avoid another consolidation. At press time, the premier cryptocurrency trades at $103,114 after a 2.10% increase in the past 24 hours. Meanwhile, its daily trading volume has gained by 16.95% and is valued at $65.8 billion.
Rekt Capital states BTC must record a daily close above its final resistance at $106,000 followed by a retest to confirm a price break and an incoming new all-time high. However, if BTC fails to clear the specified resistance zone, the asset is expected to trade between $101,000-$106,000 in the short term thereby forming a consolidation zone.
Featured image from Coinformania, chart from Tradingview
