The latest chain data from July 30, suggest that miners are preparing to sell Bitcoin (BTC). According to data analysis source Glassnode, withdrawals from miners targeting exchanges increased significantly over the past 24 hours.
The flow of Bitcoin miners to the exchanges increased by 46.5%. Source: Glassnode
There are three possible reasons why the flow of miners to exchanges might not greatly affect the price of Bitcoin. First, the potential sale of miners coincides with Bitcoin’s rejection at $ 11,400.
Second, while a 46.5% rise seems somewhat significant, this is only $ 94,000 at current BTC prices. Since the Bitcoin exchange market allegedly processes $ 24 billion per dayIt is not a relatively significant amount of BTC. Third, some market commentators think that BTC’s short-term market structure coupled with strengthening fundamentals portray an optimistic picture.
Bitcoin already rejected the $ 11,400
The 28th of July, Bitcoin’s price peaked at $ 11,400 on many exchanges. Since then, BTC fell as low as $ 10,800, marking a 5% drop.
According to ByteTree data, miners sold around 510 BTC more than mined them in the past seven days. In just one week, miners produced 6,556 BTC and sold 7,060by registering a small negative net inventory.
Since Bitcoin’s price has already dropped 5% over the past 48 hours, There is a high probability that the market is likely to be ideally priced for a mass sale by miners. If that’s the case, this additional supply is unlikely affect the BTC / USD pair in the short term.
Not a big net expense
Also, 500 BTC net spend is not that high relative to miners usual net spend in most weeks. The miners probably sold a little more BTC to cover certain expenses, But that could mean less net spending in the coming weeks.
Historical data shows that miners often sell most of the Bitcoin they manage to mine regularly. For example, a 500 BTC sell order in the foreign exchange market, it is equivalent to USD 5 million, this is not relatively high or somewhat unusual.
Convincing short-term market structure
In the meantime, traders see one positive short-term trend for Bitcoin due to its recovery from the recent crash. After BTC fell to $ 10,800, it quickly recovered above $ 11,000.
Initially, BTC saw a break in the resistance range from $ 11,200 to $ 11,400. The recovery to $ 11,000 and a strong hourly candle could influence momentum, according to a technical analysis recent.
Bitcoin’s hourly chart shows a small recovery. Source: Jonny moe
Jonny Moe, a Bitcoin trader, he pointed:
“If you were caught short during the breach break, this is the kind of hourly candle that should make you consider coverage.”
The market bias around Bitcoin seems to be on the rise. Binance Futures data suggests 58% of the “best traders” on the platform they have long-term positions in BTC.
While the market remains long term, Price action has cooled since the beginning of this week. Financing rates for perpetual futures contracts have generally decreased. This suggests that the market is no longer overheated, and traders see a favorable market structure in the short term.
Furthermore, despite the fact that the flow of miners to the exchanges increased, the amount of BTC on the exchanges has reduced to the lowest levels from just before the summer 2019 bull run. Thus, the confluence of a sizable pullback, a neutral futures market, and a sell-off by relatively small miners, could sustain Bitcoin’s momentum.
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