The landscape of cryptocurrency mining, particularly Bitcoin, is witnessing a gradual and significant change as we forge our way into the third quarter of the year. An analysis of on-chain data reveals a marked decline in selling pressure from Bitcoin miners, a notable reversal that could have exciting implications for Bitcoin’s price trajectory.
The underlying data, sourced from the on-chain analytics platform CryptoQuant, points at two vital reasons for this slump in miner-led selling, according to cryptocurrency analyst Crypto Dan. The first reason is an evident shrink in the amount of Bitcoin that miners have been sending to exchanges since May.
The second shift appears in Over-the-Counter (OTC) Desks leveraged by miners for their sales, where an intriguing phenomenon has set in. Increasingly, the volumes on these platforms seem to be depleting, lending weight to the impression that all available Bitcoin from miners has recently been snapped up by opportunistic buyers. From the start of this collapse on June 29th through to now, there simply haven’t been takers for these crypto tokens.
However, the decrease in selling pressure is not an entirely benign occurrence for Bitcoin. A thorough look at June’s data from market intelligence platform IntoTheBlock reveals that Bitcoin miners had a significant hand in the precipitous price falls suffered by the flagship cryptocurrency. In fact, it was during this period that miners unloaded a staggering 30,000 BTC, equivalent to $2 billion, flooding the market with coins. The resultant selling pressure forced Bitcoin prices to dip below the $60,000 mark.
But every cloud has a silver lining. The more recent retreat in selling pressure is laying the groundwork for a bullish epoch for Bitcoin that could extend the ongoing bull run. Crypto Dan underscores that these evolving dynamics have set in motion the “sufficient conditions” necessary to propel a Bitcoin rally in this quarter.
Supporting this optimistic forecast, crypto analyst Willy Woo had earlier opined that a miner’s capitulation would pave the way for Bitcoin’s recovery. With the recent drop-off in selling activity, Bitcoin presents an encouraging prospect of an upward trend for the flagship cryptocurrency on the horizon.
Adding to this, Crypto analyst Rekt Capital recently shed light on Bitcoin’s fledgling uptrend, stating that Bitcoin has validated its macro higher low, and is charting a course towards rallying. Furthermore, he argued that Bitcoin is also shaping a macro bull flag, offering a bullish vantage point for the digital currency.
Ultimately, it’s now a strategic imperative for Bitcoin, following a robust beginning to July, to establish a “foundation from which it will springboard to the Range High area at $71,500 over time.”
On the topic of Bitcoin’s reversal, Crypto analyst Michaël van de Poppe proposed that Bitcoin’s downtrend has plateaued and a bullish reversal is in sight as hefty moves are made in the upward direction. An added interesting assertion that he makes is that he believes Bitcoin has hit rock bottom, finding support at $60,000, thereby suggesting that a tumble below this price is unlikely.
As of the present, Bitcoin is being traded at an estimated $62,900, which seems to be a downturn when tracked over the last 24 hours, as per CoinMarketCap information.
