Recently, Bitcoin (BTC) miners have actively reduced their holdings as the price of this coin continues to fluctuate below the important threshold of $100,000. At the time of writing, Bitcoin is trading at $98,050, down nearly 2% from the all-time high of $99,860 recorded on Friday.
When the BTC market starts to move sideways, miners may continue to sell BTC to profit or offset rising mining costs.
Bitcoin miners sell assets
According to data from CryptoQuant, Bitcoin miners' reserves have dropped to the lowest level since the beginning of this year. As of now, this reserve amounts to only 1.81 million BTC.
This indicator tracks the amount of Bitcoin stored in miners' wallets, representing the amount of assets they have not sold. A decrease in reserves indicates that Bitcoin miners are distributing this coin, either to take profits or to cover mining-related costs.
Bitcoin miners' reserves | Source: CryptoQuant
Furthermore, the net flow indicator of miners also confirms the daily selling trend of miners on the network. At the time of writing, this indicator has a negative value, at -1.172 BTC.
The net flow of miners is the difference between the amount of Bitcoin that miners buy and sell. It is calculated by subtracting the amount purchased from the amount sold. When this indicator is negative, it indicates that miners are selling more than they are buying. This is often seen as a negative signal and a warning sign of a short-term downtrend for this coin.
Net flow of Bitcoin miners | Source: CryptoQuant
BTC Price Prediction: Uptrend Still Prevails
Although BTC miners have increased selling pressure on this coin in recent weeks, the bullish trend for the 'king' of cryptocurrencies remains strong. This is reflected by the position of the points of the Parabolic Stop and Reverse (SAR) indicator. At the time of writing, these points are below the BTC price.
Parabolic SAR identifies the trend direction and potential reversal points of an asset. When the indicator points are below the asset's price, it indicates an uptrend. Traders see this as a signal to buy or close short positions.
Daily BTC/USDT chart | Source: TradingView
If this trend continues, the price of BTC will surpass the all-time high of $99,860 and may break through the psychological level of $100,000. However, if profit-taking activity surges, this optimistic outlook will be nullified. In the case of weakening buying pressure, the price of BTC could drop to $88,986.