Bitcoin Miner Selling Power At Lowest For 2022, Green Sign For Market?
01 November 2022 - 08:00PM
NEWSBTC
On-chain data shows the Bitcoin miner selling power is at its
lowest for the year, something that could be favorable for the
price of the crypto. Bitcoin Miner Selling Power Has Been Going
Down In Recent Weeks As pointed out by an analyst in a CryptoQuant
post, the metric has observed surges in its value a few times this
year, and each time the BTC price has gone down. The “miner selling
power” is an indicator that’s defined as the ratio between the
Bitcoin miner outflows and the total number of coins held by this
cohort (30-day moving average, log-scaled) Here, the “miner
outflows” is a measure of the total amount of BTC that miners are
transferring out of their personal wallets. When the value of the
miner selling power rises, it means the ability of miners to dump
their coins is going up right now as they are withdrawing more of
them from their reserve. Naturally, such a trend can be bearish for
the value of the crypto. Related Reading: Here’s Why The Current
Bitcoin Bear Might Last A While Longer On the other hand, low
values of the indicator suggest miners aren’t putting much selling
pressure on the market at the moment, and hence might prove to be
bullish for the BTC price. Now, here is a chart that shows the
trend in the Bitcoin miner selling power (log-scaled) over the year
2022 so far: Looks like the log-scaled value of the metric has been
on the way down recently | Source: CryptoQuant As you can see in
the above graph, the quant has marked the relevant points of trend
for the Bitcoin miner selling power. It seems like during the past
year, the indicator has observed three instances of sharp growth,
and around the time of each of these surges, the price of the
crypto has taken a beating. Related Reading: Bitcoin Nearing Retest
Of Realized Price, Will Bulls Break Resistance This Time? In the
last few weeks, the metric has been on a constant decline,
suggesting that miners haven’t been selling much during the period.
As a result of this downtrend, the Bitcoin miner selling power has
now reached its lowest value for the last year. Going by the
previous trend, this could be a positive sign for the current rally
in the crypto. BTC Price At the time of writing, Bitcoin’s price
floats around $20.5k, up 6% in the last week. Over the past month,
the crypto has gained 5% in value. The below chart shows the trend
in the price of the coin over the last five days. The value of the
crypto seems to have been moving sideways between $20k and $21k |
Source: BTCUSD on TradingView Featured image from Brian Wangenheim
on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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