Over the past 24 hours, Bitcoin [BTC] has seen a slight increase in its price, although it has been struggling to surpass the $60k threshold. Despite this recent price uptick, Bitcoin miners have continued to offload their holdings, maintaining a bearish sentiment in the market.
Could the ongoing sell-off by miners lead to a drop in BTC’s price back to $54k?
Selling Trend Among Bitcoin Miners
During the last day, the bulls managed to push BTC’s price up by more than 3%, bringing it to $56,675.42 at the latest update, with a market cap exceeding $1.11 trillion.
Despite the bullish momentum in price, miners have opted to sell their BTC holdings, as evidenced by a decline in the balance within miner wallets. This decrease, standing at 1.8 million BTC according to CryptoCrypto’s analysis of Glassnode data, indicates that miners may not anticipate further price appreciation of the flagship cryptocurrency.
An examination of miners’ revenue over the same period also showcased a downward trend, adding to the selling pressure observed in the market.
This decrease in miners’ balance and revenue has also impacted the blockchain’s hashrate, with data from Coinwarz indicating a recent drop in BTC’s hashrate to 712.57 EH/s.
Potential Impact on BTC Price
The selling behavior of miners could potentially influence BTC’s price, given that heightened sell pressure commonly results in price corrections.
Notably, prominent crypto analyst Ali recently took to Twitter to highlight that a drop in BTC to $54.2k could trigger a $24 million liquidation event.
Further analysis of CryptoQuant’s data revealed that BTC’s aSORP was in the red zone, indicating increased selling activity among investors looking to capitalize on profits. In a bullish market environment, such a trend could signal a possible market peak.
Despite these warning signs, other metrics appear more positive. Bitcoin’s Binary CDD data indicated that the movement of long-term holders over the past week remained below average, suggesting a strong intent to hodl their assets.
In addition, indicators from the derivatives market looked optimistic, with the coin’s taker’s buy/sell ratio signaling a predominant buying sentiment among futures traders.