A vital on-chain has revealed that BTC miners entered a selling spree once Bitcoin price dropped below $26,000 on August 26. Can the bullish Bitcoin traders HODL firm at the $25,000 support level?
Bitcoin price has continued fluctuating over the past week, briefly breaking above $28,000 on August 29, but the miners have kept selling despite that. Is the Bitcoin price in danger of dropping below $25,000?
Miners Have Offloaded 4,000 BTC In the Last 7 Days
Bitcoin miners have been spotted offloading millions of dollars worth of BTC from their cumulative reserves over the past week. According to on-chain data compiled by Glassnode, the Miners started exhibiting an unusually bearish trading pattern around August 26, when the BTC price dropped below the $26,000 support territory.
As depicted below, the Miners held a total of 1.831 million BTC in their cumulative balances as of August 25. But by the close of August 31, the Miners’ reserves had now dwindled to just 1.827 million. This signals that the Bitcoin Miners have sold off more than 4,000 BTC within the last seven trading days.
The Miners Reserves data tracks the real-time changes in the wallet balances of recognized miners and mining pools. When it reduces, it means miners are currently on a selling spree. As they move more of their block rewards into the exchange, it could create additional selling pressure.
Notably, Bitcoin miners currently control about 9.4% of the total BTC in circulation. This underlines why strategic investors pay close attention to their trading patterns.
Bitcoin trades around $25,850 at press time, meaning miners have sold $103 million worth of BTC within the past week. Without sufficient demand to counter the Miners’ selling pressure, Bitcoin’s price could drop below $25,000.
BTC Price Prediction: The $25,000 Support Level Could Prove Daunting for the Bears
According to Exchange order books, many strategic traders have mounted a considerably high sell-wall to mitigate the danger of BTC dropping $25,000. As seen below, BTC traders have placed active orders to purchase 5.6 million BTC at a price within 5% of the current price of $25,850. Meanwhile, on the resistance side, the bearish traders have only put up 3.7 million BTC up for sale.
The Exchange On-chain Market Depth chart depicts the volume of active orders that Bitcoin traders have placed across recognized crypto exchanges.
The chart above depicts that despite the Miners’ selling pressure, the current market demand for BTC still exceeds supply by 1.9 million coins, around the current prices. This is a vital signal that the strategic traders could absorb the $103 million in BTC offloaded by the Miners.
If that happens, they could prevent Bitcoin from losing the critical $25,000 support.
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