Miners began to sell less than they mine. Is it so good for Bitcoin??
On May 11, the third halving took place on the bitcoin network, along with which the daily volume of cryptocurrency emission decreased from 1,800 BTC to 900 BTC. At the same time, the flow of bitcoins sent by miners to the exchanges has also decreased, the analytical company Glassnode draws attention..
“Miners play a key role in the Bitcoin ecosystem. Understanding their behavior gives investors the opportunity to deeply assess the forces driving the market, “analysts write..
These same observations are supported by the ByteTree service, although its findings diverge from Glassnode at an earlier stage. According to ByteTree, today for the first time since halving, miners have sold less bitcoins than they mined. On a weekly basis, the sales volume still exceeds the number of mined coins by 410 BTC.
The interpretation of this data may not be as bullish as cryptocurrency holders would like.
“Miners go when the market is weak, not because they are bullish, but because the market cannot absorb their coins. When they can sell, it means that the market is well supported, ”said ByteTree founder Charlie Morris.
Morris’s theory goes against the rationale that miners will sell at the highs and stockpile reserves around the lows. On the other hand, a fall in the rate inevitably leads to the exit from the business of small and ineffective miners. At the same time, there is an increasing proportion of large players whose business flows are tuned in such a way that they have to rely less on day-to-day sales to sustain their operations..
At the time of publication, Bitcoin is trading at around $ 9,500, up 3% over the past 7 days. During this time, the cryptocurrency managed to overcome the level of $ 10,400, but it was held there for less than a day.
“Falling below $ 8,800 will lead to more aggressive selling. $ 8,500 is the last support before the price fell to $ 7,000, ”says NEM Ventures Head of Trading Nicholas Pelekanos.
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