Over the past two weeks, the major cryptocurrency Bitcoin (BTC) has struggled to maintain its upward momentum, losing key support levels amid increasing fear and volatility.
As market uncertainty increases, Bitcoin miners are gradually retreating, indicating that they are reducing their positions and suggesting selling intentions.
BTC Miners Retreating…BTC Struggling
According to data from the cryptocurrency on-chain platform CryptoQuant, BTC miner holdings have been gradually decreasing over the past week. Observed on a 7-day moving average, it decreased by 0.022%.
This indicates that BTC network miners are slowly selling their holdings to cover losses or respond to potential increases in operating costs amid the coin's continued price decline.
BTC miner holdings track the number of coins held in miner wallets. This represents the number of coins miners have not yet sold. When this indicator rises, it suggests that miners have confidence in future price increases and are holding more coins.
Conversely, as in the case of BTC, a decrease in holdings indicates that miners are moving coins from their wallets to sell, confirming an increase in bearish sentiment towards BTC.
Additionally, the rising Miners' Position Index (MPI) adds to the bearish outlook. Observed on a 7-day moving average, it increased by 55% over the past three days, indicating coin movements from miner wallets to exchange addresses.
The MPI measures the ratio of miner outflows to the 1-year moving average. When this indicator rises, it suggests an increase in selling pressure from miners, potentially indicating they are selling coins in anticipation of market decline.
Miner Sales Suggest Additional BTC Adjustment
Miners' market retreat suggests a lack of confidence in BTC's ability to maintain the psychologically important $100,000 level in the short term. Their concerns were confirmed as BTC briefly dropped below this critical support level during the past two daily trading sessions.
At the time of reporting, the coin is trading at $104,990, just above the support line formed at $103,952. With increased selling pressure from miners and growing macroeconomic uncertainty, BTC may test this support level if demand weakens.
Falling below this level could see BTC drop to $101,520. If buying pressure fails to defend this zone, it could further decline below $100,000, to $97,658.
However, if market sentiment improves and demand surges, BTC could rise to $106,295.
