A major on-chain piece of data has revealed that BTC miners went on a selloff once the price of Bitcoin fell below $26,000. Can bullish Bitcoin traders hold firm at the $25,000 support level?
The Bitcoin price has continued to fluctuate over the past week, briefly breaking above $28,000 on August 29, but miners have continued to sell despite it. Is the price of Bitcoin in danger of falling below $25,000?
Miners Have Sold 4,000 BTC in the Last 7 Days
Bitcoin miners have been seen selling millions of dollars worth of BTC from their accumulated reserves over the past week. According to on-chain data compiled by Glassnode, miners began to exhibit an unusually bearish buying and selling pattern around August 26, when the price of BTC dipped below the $26,000 support territory.
As shown below, miners had an overall 1.831 million BTC in their accumulated balances as of August 25. But as of the close on August 31, the miners’ reserves had dwindled to just 1.827 million. This indicates that Bitcoin miners have sold more than 4,000 BTC in the last seven trading days.
Data from the Miners Reserves metric tracks real-time changes in the balances of recognized miners’ wallets and mining pools. When it cuts down, it means that miners are currently on a selloff. As they move more block rewards to exchanges, it could create additional selling pressure.
Notably, Bitcoin miners currently control around 9.4% of the full BTC in circulation. This underscores why strategic investors pay close attention to their investing patterns.
Bitcoin is trading around $25,850 at press time, which means miners have sold $103 million worth of BTC over the past week. Without sufficient demand to counter the selling pressure from miners, the price of Bitcoin could fall below $25,000.
BTC Price Prediction
According to exchange order books, many strategic traders have built a considerably high sell wall to mitigate the danger of BTC losing $25,000.
As seen below, BTC traders have placed active orders to buy 5.6 million BTC at a price within 5% of the current price of $25,850. Meanwhile, on the resistance side, bear traders have only put 3.7 million BTC up for sale.
By Leonardo Pérez
