Bitcoin miners have been actively reducing their holdings in recent weeks as the coin continues to hover below the critical $100,000 mark. At press time, the leading coin is trading at $98,535, down 1% from its all-time high of $99,860 hit during Friday’s session.
As the Bitcoin market begins to trend sideways, miners may be incentivized to spread their holdings further to make a profit or to offset rising mining costs.
Bitcoin Miners Sell Their Assets
According to data, Bitcoin miners’ reserves have fallen to their lowest level since the beginning of the year. At the time of writing, it stands at 1.81 million BTC.
This indicator measures the number of coins held in miners’ wallets. It represents the reserves of coins that miners have not yet sold. A low Bitcoin miner reserve indicates that miners on the Bitcoin network are distributing their coins either to make a profit or to cover mining-related costs.
Moreover, the BTC miners’ net flow readings confirm the daily trend of selling coins by the network’s miners. At the time of writing, the indicator’s value is negative at -1,172 BTC.
Net miner flow refers to the net amount of Bitcoin that miners are buying or selling. It is calculated by subtracting the amount of Bitcoin that miners are selling from the amount they are buying. When it is negative, it indicates that miners are selling more coins than they are buying. This is often a bearish signal and an indicator of a short-term downtrend in the price of the coin.
Bitcoin Price Prediction: Bulls Remain in Control
While BTC miners have added to the selling pressure on the coin in the past few weeks, the bullish bias towards the royal coin remains significant. This is reflected in the positioning of the dots that make up the Parabolic Stop and Reversal (SAR) indicator. At the time of writing, these dots are below the BTC price.
The Parabolic SAR indicator identifies the trend direction of an asset and possible reversal points. When its points are placed below the asset price, it indicates an uptrend. Traders interpret this as a signal to enter buy trades and exit sell trades.
If this trend continues, BTC price will reclaim its all-time high of $99,860 and may cross the psychological $100,000 mark. On the other hand, an increase in profit-taking activity will negate this bullish outlook. If the buying pressure weakens, BTC price may drop to $88,986.
