Historical data shows that some miners started selling bitcoin (BTC) at the end of July, which has increased the selling pressure in the cryptocurrency market.

Finally, the dominant cryptocurrency has plummeted since mid-August, falling 13%, and since then BTC has struggled to regain the $ 12K mark.

According to CryptoQuant CEO Ki Yong Joo, continued sales of miners may not be enough to prevent bulls from popping up. On-chain data mining companies keep an eye on the movements of miners and whales, as they contain large amounts of bitcoins.

Network analyst Willie Wu explained that miners are one of the external sources of pressure from bitcoin sellers. He said earlier:

“There are two selling pressures that are unparalleled in the market. (1) Miners who dilute supply and sell in the market are a tax hidden by monetary inflation. (2) stock exchanges that tax traders and sell in the market.”

When miners start selling their bitcoin holdings, usually to cover costs, it can trigger a correction in the cryptocurrency market.

For example, from August 17 to September 5, the price of Bitcoin fell from $ 12,486 to $ 9,813. During this time, several whales sold bitcoins for $ 12,000, and the same behavior was observed among miners.

Especially sales pressure from miners and whales stems from the current inertia in the cryptocurrency market, but in the long run, Ke explained that this is not enough to stop the long-term rally.

If miners suddenly sell large amounts of bitcoins, it can lead to a larger correction, because a small price movement can lead to liquidation for high-impact traders. Therefore, even a relatively small sale of miners can theoretically lead to large price fluctuations.

Key says the intensity of mining sales was not enough to stop future sales. He said:

News for miners: Some miners began selling at the end of July, but I believe in the long run that miners did not sell Bitcoin in large enough quantities to stop the next uprising.

According to ByteTree, the net inventory of Bitcoin miners has decreased by 125 BTC per week in the last 12 weeks. Data shows that miners sold about $ 1.362 million dollars in bitcoins per week on top of the BTC they mined and sold.

As Key emphasized, the data show that miners sold bitcoins in large quantities, but not in quantities that did not follow normal behavior.

An ox cycle after half at the end is still possible
Bitcoin still hovers above the $ 10,000 critical technical support level despite many bears’ attempts to bring the price below a key level.

Bitcoin’s resilience amid growing selling pressure points to a cautious long-term bullish trend.

Several indicators in the chain also indicate that Bitcoin is now in a healthy accumulation phase. Raphael Schultz Kraft, CTO of Glassnode, said:

“Short-term unrealized net result (STH-NUPL) with # bullish sign here imo. This zero line rebound was significant, a very distinctive feature of previous beef markets and a historically good buying opportunity. “

Source: CoinTelegraph